Crafting

[Bram1704]

Can someone explain how the gear crafting works exactly?
Random example, using CTRL over a Houyi's Treasur will say "Talent (2 silk thread - headgear) Kirin Pearl #5 + Houyi's Treasure #3"
What is '2 silk thread'? is that any item where you apply 2 golden Thread to? Or items that already have 1/2 red thread slots?
what does the #5 and #3 refer to?
To craft this, you would put in first a Kirin Pearl, then a Houyi's? Or is the order based on the # value?