From Dungeons of Dredmor Wiki

Many objects in Dungeons of Dredmor can be crafted from components found lying about the dungeons, allowing the player to supplement the random finds with slightly less-random creations. Crafting skills include Alchemy (for creating Potions and Drinks), Smithing (for creating melee Weapons and Armour), Tinkering (for creating Crossbows, Traps and Bombs) and Wandcrafting (for creating Wands). Click the icons below to be taken to a page full of recipes for the associated crafting items. As of the Conquest of the Wizardlands expansion a new crafting system has been implemented: Encrusting. This aspect of crafting is used to improve existing items rather than creating new ones, and utilizes each of the four crafting skills and five of their associated tools.

Crafting

Encrusting