Can you "transmute" an item multiple times?
Yes. I’ve done this with several items. You can transmute items that have already been transmutes as many times as you like. Transmutation stones can be used on any two items of the same type no matter what.
Guild Master – The Papacy [POPE] (Gate of Madness)/Road Scholar for the Durmand Priory
Writer/Director – Quaggan Quest
https://www.youtube.com/watch?v=ky2TGPmMPeQ
Writer/Director – Quaggan Quest
https://www.youtube.com/watch?v=ky2TGPmMPeQ
Just remember to save your Fine transmutation stones for lvl 80 items.
Yup, i have done this with the thief starting hood a good few times now.