Press I to open and close Inventory. Press the red X button in the inventory to turn on remove mode, then close the inventory and remove blocks! Press any other button in the inventory to turn on modes of other blocks, and place them where air would be.
Stuff added in this update: Water blocks are fixed Oceans added Mossy stone houses with beds in them added? Cherry blossom trees added Cherry blossom planks added Beds added, (If it gets dark, you sleep in them) Day + Night added (Night is dangerous) Mossy stone appears underground