To create Living Equipment, you will first need Iron Armor (or Iron Armour, if you prefer), some Arcane Ash, and some Binding Reagent. You'll also need at least a
Common Tartaric Gem in order to hold the Demon Will required.
It clings to me tightly...
Living Equipment is equivalent in durability to Diamond Armour, and can be repaired in an Anvil with more Binding Reagent.
as with any other Alchemy Array, press [ПКМ] while looking at a block with the Arcane Ashes in hand, then apply the Binding Reagent. Then place in your Iron Helmet, Iron Chestplate, Iron Leggings or Iron Boots, stand back, and watch the show.
Living Equipment starts off equivalent to Iron, but it has Upgrade Points that can, with care, be spent to train it in specific ways. It starts with 100, but there may be ways to surpass this limitation...
It's alive, all right... and it's learning from you. You'd best be careful what you teach it.
You can keep a closer eye on what it's learned so far by holding [Shift] when you look at it.