Eventually you will work your way through the available wood resources and thus will no longer be in a position to replace tools and torches, but by that point you should have a plentiful supply of every resource except Diamonds, but that still makes for a good first mining run. With those resources safely stored in your Chests, it is time to prepare for a return to the overland.
Locating sources for resources is a crucial step forward
Creating Building Blocks
Stone Blocks (not Cobblestone) are the preferred medium for building the walls of our compound and our proper home and castle - and to obtain them all that we need to do is start making use of the stacks of Cobblestone and Coal we have acquired by cooking the Cobblestone in the Furnace to turn it back into Stone.
The formula is one stack (x64) of Cobblestone plus x8 Coal. That will result in one stack (x64) of Stone Blocks. Repeat that until you have a proper supply of Stone Blocks to start building with, and then spend some time converting the area near your shelter into a nice and level building site. By the time this is done you will have mined tons of material and probably moved even more tons but the end result is a nice flat area to build on that offers you line-of-sight to keep you from being ambushed by mobs.
Building a secure home is Priority One
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