Instructions
Instruct Willy Builder to construct a mine in your garden. Mines become available once you become a level 26 gardener.
Hire at least one Diggerling from Arfur's Inn. Diggerlings work in the mine and dig up items, including Dragonache eggs. Be patient; it usually takes some time to unearth rare Dragonache eggs.
Purchase a Cluckles pinata from Miss Petula's Paper Pets to aid in hatching the egg. The egg will not hatch on its own. Instruct the Cluckes to go to the egg.
Feed the baby Dragonache a bottle of milk, a snapdragon flower, a Dragumfly pinata, a Reddhott pinata and a Salamango pinata. The baby will not cocoon without eating these items. The baby will emerge in its adult form once it has cocooned.