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I cannot find the rusty key in the forest. I swear I found it before but I can no longer find it.

you likely found the crusty key.

If that opens the chest under the mushrooms then that is the key I need. However, I still only found it once and cannot find it again to open that chest.

That’s strange, did you ever read a journal entry referring to a C-Remover then not save afterwards? Because the game code doesn’t allow you to obtain that key before your PC has the relevant knowledge.

I don't think I did but that would explain why I can't find it. I have now obtained every entry aside from 16, assuming that the entries go 1-18 then the ???, that I know of. Now I just need to make it snow or otherwise find  the desaturated trees. That should then allow me to craft the recipes unlocked by making it rain and letting me find the key to the magic chest.

There has to be a guaranteed way to find a true hydra. The journal entry is no help at all. I know that there are 11 hydras and that 10 of them are false. A 1 in 11 chance of identifying the true hydra is ridiculous.

Yes, there is an alchemy recipe for a 'catalyst'

Is that catalyst the C-Remover? It can't be since it requires a true hydra to craft it. Is the catalyst recipe found in the magic chest or painted chest? Is it related to the second set of numbers you found for the cabin library? How would someone go about painting the chest in the first place? Never mind about the painting I figured it out. Every recipe I currently have written down aside from the C-Remover needs Frost Caps but I'm seeming stuck in a loop of needing to solve the hydras to get to the Frost Caps and needing the Frost Caps to solve the hydras. The Malice cure needs Frost Caps. The walk through matter potion needs Frost Caps. The only recipe I can actually get the resources to craft that could possibly be called a catalyst would be the suppressant but I don't think that's it.

Catalyst recipe: Cabin Library sounds familiar for this, but it is not related to C-Remover nor the Suppressant. They are all separate recipes.

Frost cap: not required in Catalyst recipe.

I believe that I managed to find out the catalyst while testing out all possible numbers in the journal entries.

Once you find the lilith, go back to the tree guy who wants it and he'll drop the key again (for a price)