Originally posted by Astrolode:

Well... Given that I've only just built my first house after starting over, I'm probably a way off any building projects! But I do have a question - when do I get to build with stone? I want to build a castle!

You should be able to craft a stonecutter once you smelt iron ore into iron. 10 wood, 2 iron, 4 stone.

You can beat the second boss to gain access to the crypts, or you can search around for a muddy scrap pile in the swamps from the very beginning of the game.