I like the ambiance here. The faint music, the random sound effects, the use of colors. It almost reminds me of playing RuneScape WAY back around 2006 or so.
It was sometimes hard to tell if an item on the ground was something I could pick up, or if it was just a decoration. Maybe give things you can interact with an outline or a glow or something, just to distinguish them. And if you search an item (like a tree trunk), and there aren't any items inside (or if there were, but you removed them all), make the outline/glow a different color so you don't come back and search it again.
I'm not sure if it's a glitch, but at one point, I was using the gears connected to the water wheel, and the ingredients disappeared in the wrong order.