A magical candle that is crafted by combining two Magic Tallow and a piece of string on an Arcane Worktable. They can also be coloured there. Candles have a light level of 14 and can only be placed on top of non-transparent blocks. The magical candle cannot tilt sideways like torches, it has to be sitting on a solid block to be placed.
Heres a video that shows you how tallow candles work http://www.youtube.com/watch?v=Gao-9telRLw