Learn the Fireball spell (you need to discover "Dragon") and get Blaze as a resource. Equip a few Fireballs into your loadout before you start combat, and one Conjure Blaze. (You will get more combat spells later on.)
Afaik the only way to recover stability mid combat is with potions.
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I feel like the previous version (0.3.9) was a bit more fun with the spell creation and augmentation, especially when combining with Amass Power. Also made most cap raises trivial, since you could do a lot of it with spells, not just upgrades.
In 0.4.2, capacity is the name of the game. At a certain point, you must play with potions to get to the next stage. Sadly, the game hardcaps shortly after, there's no way I can reach 1000M Ceremony or Elementia, with upgrades that can only give +8/+12 capacity, and no percentage capacity increases.
The few things I miss from 0.3.9 are brewing multiple potions at a time, and having more than 2 potions in the toolbelt. Also there's so many resources/items available now that keeping track of them is a little annoying, so here's my bid for a "condense stats" toggle where they can all fit on the screen without the need to scroll up or down.
The big thing I like is the combat/rituals mechanic, combined with the additional spell loadout it was fun to play with, but unless there's more (realistically accessible) upgrades hidden behind some high level thing, I think I have to wait for the next version.