is it possible to create weapons, if so how and what quests do i need to do.

Yes it's possible to make weapons. After you reach a certain friendship level/certain mainquest line with Yoshitsune she'll unlock an option to make weapons and give you a tutorial quest to make this lvl 10 weapon. You don't need to do the quest to make other weapons, however, but you start of with a limited amount of weapons available to make and you need to find recipes/level her friendship to obtain more.