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Update to master/elite classes on your most used classes first, since you gain a permanent boost in performance. As mentioned, save your LC for paladin.
I found that I didn’t really need many potions until I started running the dungeons/caverns with only 2 birds (or with under-level birds). With only 2 birds, Matilda ended up being a liability — not enough offense, not enough healing to cancel what I was taking. Using potions allowed me to shift towards an offense-first mentality.
Fortunately, when you really start needing potions, you should be able to run through King Pig’s castle. I can do it in less than 5 minutes, and you get >300 snoutlings (>3600 snoutlings/hour). This should be enough to buy upgrades and plenty of potions, so that you don’t have to worry about crafting cost.
If you’re into crafting potions, the best investment you can make is the Golden Chili. It allows you to clear single-stage battles quickly, netting you more resources per hour. At high levels, a single Wizard rage attack can clear most levels.