Unfortunately, Saddles cannot be made from the furnace/Crafting Table and instead you must locate them. Saddles can be found in the following ways.
1. In a Chest
There is a chance of 2.5% to find saddles in chests. So try to open every chest you encounter. Although chances are minimum but getting a saddle through a chest is much easy as compared to other options.
2. In a Dungeon
You can find Chests in a Dungeon which are found carrying Saddles and other various goods for you to use. To find a Dungeon you can either run into one or you can use the Eye Of Ender to locate it. In order to locate it using the Eye Of Ender, throw the Eye and then it will drop at a point which you can dig through to find your Dungeon. Once in the Dungeon, you will find several Mine Shafts in which there will be Minecart Tracks. Roam around this area to find a Chest and if you are lucky you will find a Saddle.
3. In the Nether Fortress
You can find Chests in the Nether Fortress. These Fortresses can be located in the Nether Realm; they aren’t as easy to find as the Dungeon but they carry many valuable items in Chests that you can use. To get inside the Nether Realm, you need to make a Nether Portal using Obsidian Blocks and Flint And Steel. Once in the Nether Realm locate your way through the Realm avoiding any unnecessary attention and you will eventually find the Nether Fortress. Inside, you will find some Chests which will be carrying Saddles.
4. From Fishing
You can fish Saddles from the Fishing. Make a Fishing Rod and go to a Lake, River or the Ocean and then use it to fish Saddles. It will take a few tries as you obviously cannot get it on your first try. To make a Fishing Rod, you need 3 Sticks and 2 Strings which will allow you to make a Fishing Rod on the Crafting Table.
5. By Use of Emeralds
You can use Emeralds to buy a Saddle from a Villager if you are lucky. It is not easy to find a Saddle with a Villager but if you are lucky enough you may find it. To get Emeralds, you must mine them or kill Pillagers; however, that won’t be necessary as Pillagers can be dangerous.
6. In a Desert Temple
The floor of the structure of the desert temple will always be at Y:64, which means that the temple, either partially or completely, may be covered by sand. In the temple, find the blue clay block in the center of the floor. Digging this block will open up the secret chamber with four chests. And there is a very strong possibility that you may find a saddle in any one of the four chests, but be aware of the TNT booby trap in the secret chamber.
7. Find in a Village Blacksmith’s Building
There is a 16% chance to find saddles in a blacksmith building in villages. It can be tricky to find out a saddle in a blacksmith building in a village.
How to use a Saddle
When you have your Saddle, all you have to do is right-click on the Horse with the Saddle in your hand and then apply it on the Horse. You should also Tame the Horse by climbing it and getting bucked off over and over again. Once its Tamed Hearts will surround the Horse meaning it has been Tamed. Horses can be found roaming around in the Forests in groups or alone so you should not have any trouble locating them at any point.
Other Options
Llamas can also be Tamed and Mounted on but the Saddle cannot be applied to them. They can be Tamed by feeding Wheat or getting bucked off by climbing them over and over again until Hearts surround them.
Unlike Horses, Llamas can be Hostile and spit at you which can cause some damage so be sure not to hurt them. Llamas cannot be controlled as well unless you use a lead to move them around.
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