How do you do this? I am assuming one might get an achievement. Please ping me if you know.

The alchemist is currently broken (I'm not sure how though, just that it is). But you need to combine it with a tincture and/or a layer card, if you're using a wearable token. If you click on one of the items here it will tell you what you need to make it.

Oh I was trying to make a book. Thank you so much,

If you want to make a book, take a book token to the alchemist and turn it in to him and he'll give you a randomized book from the various ones he makes. I think you actually have to be a zombie to make the alchemist do his thing, and I'm not yet sure whether you can just put on one of the recent zombie skins or whether you have to take one of the '14 vials.

If you want to make a specific book, make sure you take a tincture of the appropriate color with you. When he asks you what you want to do, click the button for the token and then the button for the tincture before finishing the process.

Don't have more than one token/card/tincture with you if you can help it - having multiple tokens/tinctures/cards in your inventory will make the system default to a card/tincture you may not want to be using.

where is he?

Shadowglen > Underground > Main Shopping Area AKA Commerce page > immediately to the right of the Philosopher's Store (click on the glowing stove looking thing).

Thank you very much.