Quote Originally Posted by ShakeyX View Post
So I understand this is demonstrative, which is something you can literally point at. Maybe you are getting a back massage and can say this? Maybe you are pointing at your food?
Yes. When your food is cold, you can use the pronoun, when the weather is cold, you can’t.

Quote Originally Posted by ShakeyX View Post
However ontop of that I just want to know how you reference a whole sentence or situations as we do in English and other languages? "I like to eat cheese at the weekends" - "Oh, I like that too". Or 10000 of other examples :P
More or less like in English.

The pronoun это is used for referencing a whole sentence.
E.g.: «Я плету из бисера. Мне это нравится.» (это = я плету из бисера)

The pronoun он/она/оно/они is used when a noun is referenced.
E.g.: «Я читаю книгу. Она мне нравится.» (она = книга)

Though when there is no object to reference to, no pronoun is used.
E.g.: «Холодно.»