This is how you process food in Genshin: Gather some whole foods from quests, dungeons, chests, etc. Find a cooking pot on a fire. This can be found worldwide, mostly in dark forces’ camps or in the capital. Interact with the cooking pot. After that, a menu will be opened. There are tabs on the top to switch between ingredients and cooking
We don’t know whether this is a bug or an intentional game design, but you will need to travel at least 500m from that spot to get some Noctilucous Jades. More specifically, this is the Noctilucous Jade location: Look at the given map screen shot, you can find jades either on the island which is marked, or where the player is standing on the
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