You can first transmute items in Zeryphesh, Act 2. Visit Albrecht in the north of the town.

Albrecht the Transmuter



Ingredients
 Result
3 x potions of the same properties Upgraded version of the potion
3 x Big health potion Giant health potion
2 x gems and weapon without sockets Add socket to weapon. Can only do once per weapon.


[COLOR=#C0C0C0]In order to create the socket(s) the gems have to be of the same, or greater, level than the item you want to socket[/COLOR]

[COLOR=#C0C0C0]Specks are lvl 8[/COLOR]
[COLOR=#C0C0C0]Chips are lvl 22[/COLOR]
[COLOR=#C0C0C0]Shards are lvl 36[/COLOR]
4 x Unique Item 1 New Random Unique Item from avg levels of the 4 unique items
2 x set items 1 random set item from avg levels of the 2 set items
2 x spell scrolls 1 random spell scroll
3 x Set Item 1 New Random Set Item
2 x Common Set Items Unique Set amulet
3 x gems/socketables of same level 1 random gem of same level



I will add more to this list as I find them and any more you guys add to this thread too.