Would be great if it would also allow crafting currently held ghost item.

Came here to request this.

Sounds like a good addition. I will check if that's possible.

It's possible, I've made the change required to get that working while waiting for the update :)

This:

if not current_item then
    local cursor_ghost = player.cursor_ghost

    current_item = cursor_ghost ~= nil and cursor_ghost.name
end

should be added after:
local current_item = cursor_stack and cursor_stack.valid_for_read and cursor_stack.name

Oh that is kind of easy thank you!
I have some time today so I will add it to the mod with credit of course.

1.2.0 is released. Tested it with vanilla "pick ghost item if no items available" option and Cursor Enhancements mod Automatic ghost transitions option and both work fine. Thanks again NeveHanter.

You're welcome and thanks for the update! ;)