So far, I've only been able to create gems and potions. I've found a few sites online that say you can do other stuff, but I've never been able to make it work.
Anyone have experience here?
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I don't have much experience, but I have tried a few of the combinations found here and have gotten them to work (3 rings = 1 ring, 4 rare items = medium gem)
Pretty complete summary with a table. It mentions unique items and other goodies.