I won't go into specifics, but generally by now you will have 2 knights - an attack knight (maximise attack stats i.e season 1), and a defence knight (mix of celestial, wisdom, sacred). Play with it to work it out. No doubt by the time you read this new gear is out anyway.
In terms of what happens when you get this gear. In is simply a matter of either unlocking it's attributes (by using charms (exploring in hero screen is a good way to get charms), or sacrificing other gear) and forging. For forging you need dust and hammers. There is now master hammers for guaranteed level increases - otherwise it is just a matter of chance.
Each wild is associated with a particular resource with the exception of Bogs and Plains. These wilds can be attacked to plunder those resources or conquered to provide a bonus to the City resource production.
- Bog - Nothing (Cannot be attacked)
- Grassland - Food (Drops Sheild)
- Hills - Stone (Drops Helmet)
- Lake - Food (Drops Weapon)
- Mountain - Ore (Drops Armor)
- Plain - Build Second and Third City Here
- Woods - Wood (Drops Pants)
All 5 wilds drops (Hammers and Enchantment dust)
Wilds Level 1-3 Drop Common Enchantment Dust (Best for wooden Hammers)
Wilds Level 3-6 Drop Uncommon Enchantment Dust (Best for Stone hammers)
Wilds Level 7-9 Drop Rare Enchatment Dust
Wilds Level 10 Drop Super Rare Enchantment Dust
The better the hammer the better the odds of forging.