Breeding is an important game mechanic in Palworld that will allow you to produce Pal offspring with better passive skills or a subspecies. Breeding allows you to get unique Pals and farm for new Pals without having to go into the wild to look for new Pals, fight them and catch them. Instead, the bred Pals will be yours from the first hatch.
The first thing you'll need when breeding Pals is Cake. You're going to need a cake for every egg you want to produce from breeding, so make sure you have a steady supply of flour, red berries, milk, eggs, and honey if you want to breed a lot.
The next thing you'll want to do is make sure you have a Breeding Farm at your base. Make sure one Pal is female and the other is male, and place them in the breeding farm together.
Once you have placed your Pals in the breeding farm, drop the cake into the chest in the breeding farm. If all is done correctly, you'll see an indicator that states “Love is blossoming between the two Pals!”. You'll see a loading bar and once the bar is full, you'll see a new Pal egg appear somewhere in the breeding farm.