The Dink Network

To cook something you need to take it out of your bag and then go to the fireplace/fire. Those things may not have been intended to replenish your life, but to replenish your hunger (new stat introduced in this 'game'). If you don't eat for awhile, your stats will suffer and you will eventually lose life. If you keep Dink well fed, he will have nice stat boosts.

You should check out the readme.txt file included in the DMOD folder. It explains everything very well.