If you would like to go home, you will need to make a catamaran. There are no more islands other than this one except for Crystal Island. You can get there at West Beach( second island) or at pier beach ( first island). you unlock this island by fixing the thing at the temple( i forgot what its called but you need logic, and body and mechanical).
Hope I helped and good luck!
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The torch is used on the 3rd island to smoke bees then get honeycombs (not very good 7 hunger 14 energy and -2 bladder)
go on a canoe
The hidden forge is inside the llama temple on volcano island, the 3rd island
at the top of the volcano on the 3rd island
well on the second island you must build a canoe , then have a LOT of energy (sleep/eat)