Let's Play Terraria Mostly Blind Ep 28 Finally Finishing Fishing For Now

With some planning, you can make a water lake, honey lake, and lava lake all layered over one another. Of course you need more things before you can fish in lava

You really need to do 2 things, it's hindering progression for you.

First is to summon a goblin army. You can use tattered cloth to make goblin battle standard and summon them. This will spawn the goblin tinkerer npc and allow you to combine accessories into stornger ones.

The second is to fight and beat the eater of worlds. This will give you materials to make the next level of pickaxe which can mine hellstone. To fight the eater of worlds, break 3 shadow orbs in the corruption.

Breaking a shadow orb also enables meteorites to spawn

The cobalt shield negate knockback, very use full when building in enemy territories.
Not getting knocked off from ropes or platforms.

If you place water in a hole under your house, like the torch holes, it become a workbench, for making mud and filling water bottles. Same with honey if you think you need a lot of honey bottles. Water every where will do that of course, but it`s a nice thing to have in house for potions.

Since you still don`t have a house in the ice biome, you can make one low by the mushroom biome, to get a pylon to go there.

I think the only point in dirt bombs exist, is for Sky block, modded. So you start on the island with just enough dirt for one. Chop the treen build under the dirt to mine it safe start doubling the dirt with the dirt bombs. Expand till mobs start spawning. There is no lag of dirt in standard Terraria.
Sky block the reason I know way to many Terraria mechanics.