Put Wool in a Loom to make Cloth
Recycle Soggy Newspaper in a Recycling Machine for Cloth
Put Mummies in the Skull Cavern to get Cloth as a drop
Buy Cloth from the Traveling Cart when it appears
Use the Desert Trader to trade 1 Cloth for 1 Honey on certain days, then obtain more Cloth by other methods
Tailor with the Sewing Machine using Cloth as a crafting material
Place a Rabbit’s Foot in the Sewing Machine with Cloth to make certain clothing items, not Cloth itself