Minecraft wiki entry for Development_versions, associated text: Can now be crafted with 3 stone blocks and 1 iron ingot.
Can now be used as a simpler way to craft various stone variants (stairs, slabs, bricks, walls, chiseled, etc).
From cobblestone, all types of stone and polished stone, sandstone, brick and nether bricks, quartz, all types of prismarine, end stone and end stone bricks and mossy variants.
Sound effect added for crafting blocks with stonecutter.