Can I create a recipe that creates more than one product?

Recipes can only be created for a single product, however you can potentially use components in order to create a two step process that results in increasing your stock for more than one product.

This can be helpful in situations where you firstly make a large batch of a product and then later package the product into different sizes / formats in order to sell them.

For example, if I make Body Butter and sell this in 3 jar sizes (Small, Medium, Large) I could use a component in order to create my large batch of Body Butter, and then include the component into my variations to track my different size jars.

Creating the Body Butter as a component will mean that you don't need to repeat the ingredients for each jar you make - all you will need to do is add a reference to the "Body Butter" component to each variation recipe along with the amount required for each jar. Using a component means you will manufacture the component before you create your jars in order to increase your stock of butter for use in your jars. 

If you also add custom materials to each jar (i.e. a different fragrance) you will need to add the amount of fragrance added at the jar level, or alternatively you may wish to treat each fragranced body butter as a separate component product so that you don't need to calculate the fractional amount used in each jar.

Once you have your components and recipes in place for your Body Butter, in order stock up the correct number of jars you are going to sell, you'll need to add manufacture records for each of the variations so that they can be linked to the correct size.