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Guest 6801328
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The better idea is pretty much what you don't want to: forget she is an evil lich.
But one can't actually forget that. You can only pretend to forget that. And that drives the fundamental difference in playstyle.
I'm currently in a game where we are running an official module that I've run before, which is the one situation where I do agree that you shouldn't use player knowledge. I don't want to spoil things for the rest of the table, so I'm keeping my mouth shut. And it's spoiling a good chunk of the fun. I don't get to participate in the problem solving or decision making, and when I know the rest of the group is making a bad decision I just have to sit there and bite my tongue.
Basically I'm acting like my character, but I don't feel like my character. Which is what you are asking the OP to do.
On the other hand, in a minute you could come up with 100 different reasons his character might recognize that name. If he just runs with that and tells the other players she's a lich, he may spoil the DMs (ill-conceived) plans, but now everybody at the table gets to keep feeling like their characters. "Crap! There's a lich in the party! What do we do?"
I don't think there's a right way versus a wrong way here. I've played both ways and both ways are fun. But overall I prefer not having to pretend to not know things, and with the one exception of not spoiling surprises for others, I don't think there's really anything to be gained by feigned ignorance.