I don't know what to do!!! I had a villager carrying the cauldron when another reached a milestone and all went to celebrating and the first villager dropped the cauldron!!! I looked to see if it was back in the wood pile but it's not there and is nowhere to be found. Is it lost forever?

It's okay, it's not gone forever. Close the game and open it again. The cauldron will be back where the villager got it in the first place.

Oh. My. Goodness. THANK YOU!!! Wow... I never knew I was so dramatic... crazy what VV will do to a person. Thanks again!!!!