Crafting

Finding a Forge will allow you to access the crafting system.

You can combine two magic staves. In most cases this will make the first stave more powerful by the order of the second stave (for example, a Fireball+1 crafted with a Magic Missile+2 will result in a Fireball+3).

Sigils

Special Combinations

White Wyrm Spine + Dagger

Wasp Queen Stinger + Dagger

Spider Queen Fang + Scimitar = Fang (unique sword)

Fire Ant Carapace + Leather Armor

Golden Sphere + Rope = Amulet of Detect Gold

Finding a Magic Desk will let you copy scrolls, provided you have a blank scroll in your inventory.