A millstone is used to grind up certain plants to make sugar, flour and dye. Each milling job requires an empty bag. To operate, it needs to be connected to a mechanical power source such as a water wheel or windmill that supplies it with 10 power units. If none is available, a quern can be used instead, although millstones process plants much faster than querns. Before they can be placed as a building, you must first construct the millstone at a Mason's workshop.
If the power to the millstone is interrupted, any jobs must be requeued when power is returned. Therefore it is best to have uninterrupted power or at least the ability to run it for a long period of time.
A millstone can be placed in a hanging state, however, it will not actually be constructed as the builder needs to be able to stand on the square on which it is being built. Because of this, a millstone must be powered from above or from the side, not from below in order to be able to complete construction.
 An Example Setup
As it is most efficient to set up workshops near their materials sources, usually by putting stockpiles next to them, it's common for millstones to be set up near farm plots. Putting a millstone just under the surface lets it be powered by a windmill on the surface, like so:
Side view - = - - = - * * 1 2
Note that version 1 only works if the windmill is built first, and version 2 only works if the millstone is built first.
For a basic overview of how the different machine parts work and work together, see machinery.
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