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My friend has just picked up the starter box and has gone with Khador.

What else would be good for him to pick up for a nice little 35pt force? Money dependent of course.

Good models to have in general:
Kayazy Assassins + UA
Warjack Beast-09
Winterguard Infantry + UA + Kovnik Joe
Wardog
epic Eiryss

Good models to add to starter box:
Wardog
Winterguard Mortar (x2)
Beast-09 (sub for the Juggernaut)
Battle Engine
epic Eiryss

You can also drop Sorscha from the starter box for pIrusk, who gets a lot more mileage out of the MoW shocktroopers and stock warjacks.

What's his budget?

You can do a 35pt Tier 4 sorcha army
1 Winterguard (6) + standard/officer + 1 rocketeer
2 Mortars
Convert the juggernaught into Beast 09
Have the destroyer, and then pick up a marauder
you also get a free kovnik joe

For a 35p force i would add a unit of widowmakers, another warjack. and maybe some ironfangs with UA or more Man-o-wars

Good luck