Making a new target? Why does she—oh shit the target's on fire. Strange flushes a little bit before stammering, "I can just coax the tree to grow us something."

He hopes. But Billie said she wanted one of the knives, Strange will give her one of the knives. Picking it up, he gently tosses it towards Billie. While he's certain she can catch it, this is still an actual knife, so he's underhanding the toss and deliberately not using much force behind it.