Have you found any alchemy formula? How about the alchemist in the village?
The alchemist will require a little searching to find; formula can be bought or found (though will just help fill up your inventory until you can talk to an alchemist).
The alchemist is
inside [spoiler]in the cellar of the miller's house. You can find the key for the locked hatch [spoiler]upstairs in the kitchen [spoiler]in a cooking pot, covered with lettuce.
[/spoiler][/spoiler][/spoiler]
