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The general steps for making it work with GMLive would be:

1. Add GMLive and shader_replace_simple to a project

2. Do shader_set_live(shader_name, true) in the end of obj_gmlive's Create

3. Try running and changing something in the said shader.

Nothing else is needed.

Thanks for the clarification! I think maybe the create event for my TestObject was firing before obj_gmlive's, and that's why I was having difficulty.