With all this fantasy stuff, it feels like a crime there isnt any actual magic, so i present: Spellbooks!
Single-use items that each cost 500 cotton, firing out spells when released (away from the ground) like pellet guns. They would be to the bottom of the fantasy tech web.
Fireball Spellbook: Throws a giant fireball which destroys blocks, bounces thrice, and leaves lingering and damaging fire where it bounces. (fire removes 150 cotton every 0.5 seconds)
Icy Winds Spellbook: Creates a large but short ranged gust of frozen wind that travels 3 blocks and freezes those who it touches for 3 seconds.
Pumpkin Spellbook: Fires a large but very slowly moving jack-o-lantern which slightly homes onto yeeps. Upon contact with something (or after 10 seconds), explodes with the radius of a grenade which destroys blocks.
Cotton Shield Spellbook: Once released, hovers in place for 3 seconds while it creates a 5x5 cotton wall in front of it, the cotton blocks being identical to the ones from the pillow bomb.
To clarify, the spellbooks disappear when you use them, making each spell cost 500 cotton