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Before I purchase this, I wanted to make sure if I can use Independent Items created by YEP_ItemCore as ingredients for this plugin. I assume the output being an Independent Item is no issue as well right? (since that's handled by YEP_ItemCore)

Yes. Independent items can be used both as an ingredient, and can also be returned without issue. 

There is also a 'bonus stats' system in place where an independent result item can inherit certain traits from its ingredients, which if they are independent, could also inherit from its ingredients, if it was crafted.

Awesome, are there any bundles btw? Like say, all your plugins at once? lol

I do put them on sale several times per year, the last one ended only a couple weeks ago with the itch.io summer sale, unfortunately.

I believe if you're following me, itch will send you an email the next time they go on sale.