After beating the game once make a new save file and talk to the blue wizard fellow



He will take you to the altar dimension.




Go to the left and interact with these red crystal




He will take you to the randomizer seed room


Input any seed you want and talk to the red crystal to start the challenge

Finding the Pickaxe is the next step and it could be anywhere. These are the possible locations

bush next to lynn's house



crate next to tess's shop


bush outside oakley's shop


bush next to the bridge


a plant pot in the dining room of ashwood's house


inside the warehouse, to the very back


a cactus across from where crocodile stands upstairs in the casino


chest where pickaxe normally is



Ideally you now have the Pickaxe

Now that you have a pickaxe you have access to more items to find the dredge hand.

Mushroom in forest


Heart Ore by River's house


Create by Tidal Mine


First chest in Boneyard


Secret room in boneyard (3 chests)


Bush near the island where frost flower is


Inside Pirate Cove chest

Now that you have a pickaxe and dredge hand let's work on getting the Rust Knuckle and Lariat

Get the key to tidal mine from Mariana


Make sure to get the harmonica from Grandpa's bedside



Enter Tidal Mine and Move the Turtle



Buy the Knuckle and Lariat from Zaegul's Secret Shop

At this point you should have all the key items you should be able beat all the dungeons as well get all the items in the overworld. Remember that most dungeons have a secret room that will contain a chest or 2.

To Beat Act 1 you need
Drowned Ore
Shaedrite
Miasmic Extract
Broken Sword

To Beat Act 2 you need
Any 2 of the following:
Fury Heart
Frozen Heart
The Shattered Soul
The Splinter
The Sunset Painting

Since items are random you just need to loot items until you get the items you need.

After getting color corrected in Act 2 you go to the lighthouse and beat the game.

Things can get a little silly as you can randomly get late game items that can unlock all sorts of late game dungeons.