Interesting and with a bit potential for improvement and expanding! I only noticed 3 issues:
1. Leveling up can decrease your health: every time I level up my health is being reduced to base 10 hp;
2. Quests should be "appropriate" to the area you are in, for example I've been in the cave and I was still getting quests of hunting 3 blue butterflies, which at this point makes no sense;
3. Some option of "fast travel" would be nice, something like teleports or waypoints, such as the ones between cities and main areas in Diablo.