Blacksmith Ed can be found in world 2, Stonefang Tunnel. Unlike his brother, Blacksmith Boldwin, Ed allows the player to use the souls of bosses to craft unique equipment. To do this, the player must first give Ed the Red Hot Demon's Soul dropped by Flamelurker. To reach Ed's forge, the player must activate the elevator towards the end of the first level of Stonefang Tunnel, which then provides a shortcut to the forge from the beginning of the level.
Ed, like Boldwin, will drop the Hands of God if killed.
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