From Cube World Wiki
Cotton Capsules drop from Cotton Plant, which spawn randomly throughout the world. They can be used at crafting locations to make Cotton Yarn with a Spinning Wheel. Once that is done it can be used to make cotton armor for Rogues.
|1st >||2nd >||3rd >||Finally|
|Cotton Plant||Cotton Capsule||Cotton Yarn Spinning Wheel||Cotton Armor for rogue requires loom|