: Recently I mixed some wood flour with diluted Elmer's wood glue to fill
: staple holes and that went ok except the surrounding cedar soaked up the
: liguid residue and is going to take a lot of sanding to get rid of the
: staining. At first I thought this approach looked good, now that it is dry
: and I am doing some sanding, maybe I screwed up!!! Have read about
: something called cabosil what is it and will it work better as I have lots
: more staple holes and cracks and gaps to fill. What works best for this on
: western red and white cedar???

Cabosil will make the epoxy sort of a translucent white and it's harder so it sands slower. You can mix some in with sanding dust to lighten the color.
Cabosil makes great glue. Some people like water base wood filler like Durhams
mixed with some wood flour (sanding dust) and possibly some fairing compound or even wheat flour to lighten the color. Use whatever mixture you come up with sparingly as evrything you don't need gets sanded off. I don't even try to fill staple holes or very small cracks, the epoxy fills little gaps well and you often see less defect than if you fill it with something that matches poorly.
Good luck.