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Cooking requires a lit fire and raw meat .
To cook, you drag the raw food onto the fire from your inventory which will cause your character to walk to the fire, and a cooked version of the raw food will appear while the raw food disappears from your inventory.
To lite a fire, you will need to have chopped a tree and dragged the wood into the fire pit in front of the cabin, and dragged a match into the fire, or if you have a rope, a stick, and an obsidian rock, you can craft a bow drill which will require rapid tapping to start the fire. See bow drill page for more info.