Incense isn't that great a tile to work, but a useful resource for trading due to its scarcity. 3 interesting options for settling: Black circle's your fishing city, which is definitely worth settling at some point, just not as city number two. With two gems in the capital, I think you can afford to be a bit more aggressive with initial city placement. If you're leaning towards war with Kublai first, I'd settle black square 1S of the stone. That'll keep Isabella from encroaching too far towards you and have decent production, possibly a candidate for HE (especially if you turn on Spain later in the game). Alternatively, the plains hill marked in white between dyes and bananas is a good spot from what we can see of the map, and would force Kublai to expand west and away from you. However I think you need iron to make that a worthwhile proposition at the moment, so that could come as city 3/4. All that will leave some space between them and your capital, which can hold a junk city to grow cottages for the others. In terms of research, I'd be inclined to head towards iron if you're planning an early rush. skirmishers and chariots will only get you so far - you may need a sword or three to take Kublai's capital if he's founded a religion.