To make your damage go up in Dragonfable, there are two choices. First you can either buy an armor that enhances your damage (EX. Kathool Adept) or you can simply train up your strength at the stat trainer (Captain Rolith).
Damage Over Time
depending on your level best damage is 50-80
He is a paladin, that can fight with you (not against you) and his damage ranges from 10-100 (his highest, ((for me)) was 150!)
U cant improve the pets damage u can only improve your Baby DRAGONS damage by buying dragon chows from lady Celestia
Use your head, but you could use damage hack for cheat engine
it is random when it activates but it boosts damage when activated It is a 5% rate.
It gives 3 turns of 100% pure base damage .. Source : Dragonfable forums
the doom weapons are level 8 weapons and do lots of damage.
In Atrea, once you get to the big tree in the center, go left, and she is at the end.
The Mightiest 100k Scythe.
The store in the links below can make it for you.
I don't think you can make anything with it, but you can sell it for 500 gold.