Wiki - Crafting

Double click your tool to open the crafting menu.  Keep in mind, if you are using Blacksmithy you must be near an anvil or forge.  For cooking you typically need to be near an oven.

This is an example of what the crafting menus look like. This is the cooking menu. You can use any cooking tool to open this menu. Tools can be purchased from Tinkers or crafted with Tinkering skill, tinker tools, and ingots.

Last ten will show the last ten items you crafted. The other sections listed below contain different items. The menu open in the picture above is Last Ten. On the right hand side, you can either click on the arrow to craft one of the item, or click on the box to the right of the name of the item to open more details. The buttons below will let you toggle whether or not it’s a quest item. Non quest item means it will not mark it a quest item. If you toggle this on and are crafting an item with the quest you are on, it will automatically toggle the item as a quest item as you craft them. Make last will craft the last item you crafted with this tool. Cancel make is for if you are crafting more than one of an item and wish to cancel the current transaction. Keep in mind the menu flicks by quickly, so it can be rather hard to click on cancel make. Exit simply exits out of the menu, you can also right click to do so.
Click the box next to the item you wish to make to view more details and more options in crafting the item. See to the right for dough:

You can now view your success chance, exceptional chance (chance you’ll make an exceptional item), the amount of skill required to make the item, the ingredients (1 flour, 1 water). Make Max will make the maximum amount of the item per number of resources you have on your person. So if you have enough flour and water to make 50, it would make 50. Make number lets you type a number of choice of how many items you wish to craft. Make now will just make one. You can also craft to bag simply by moving your tool into the bag you wish to craft into. For example, if you wish to craft into a bag of holding, simply put your tool into your bag of holding and you’ll automatically craft into that bag as long as you have space for the items in that bag.
Crafting with keys that hold resources (wood, leather, ingots, etc) will use the resources out of the keys. You do not need to pull items out of your keys to craft with them. This makes the keys extremely valuable.