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I found a Box and Machine (golden box with lever on the machine), under the College of Winterhold during college main quest (during a quest Named Good Intentions).

What does that machine do?

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Have a look around the machine. In the room before it, there's a table with a book that explains the origins and use of the forge. – user56 Dec 3 '11 at 9:37
up vote 5 down vote accepted

That is the Atronach Forge. You can use it to create various Atronach related items such as spell books, staves and scrolls by placing materials in the donation box and pulling the lever.

You can also use it to create Daedra Armor and Weapons using a Sigil Stone. You will need 90 conjuration to get this stone.

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