The combat system in this game needs some major work. While some of the lower level monsters are easy enough to beat, the higher level ones can almost one-hit kill you every time. Also, there are issues with the character getting overwhelmed by powerful enemies. For example, I have made it to the area where you encounter the first "full power" bandit. He kills me repeatedly and has the ability to walk through cliffs and house wall pieces as if they were clear. He kills me in two hits and I have no way of knowing if my attacks are doing any significant damage. I try running from him and encounter a walking eye and a ghost, both of which are also very powerful. I cannot escape because the path deadends, and I end up dead, losing my shield in the process. There is no way to acquire enough tungsten or titanium to replace it, and the shop is too unreliable in its stock. I now have lost my diamond sword trying to recover my shield, and cannot get that back either.
A suggested improvement would be to incorporate some form of "ranged" combat, like a bow. Also, enemy health bars would be useful as well as an actual number of HP for the character. Quick use hotkeys for things like health potions (that is, press the hotkey and it automatically consumes the potion, not simply revealing the button that allows you to use it) would also be a good improvement. It may also be a good idea to have a shop that sells raw materials, like mineral ores, so crafting can be done more efficiently.
For those who are having problems surviving winter due to a lack of liquid water, move a water block or two onto your farm. Activating the frozen "pond" during the winter with your canteen active will allow you to fill the canteen by one use, up to the maximum of 8.