As odd as it might seem, there is an expression, "Make/made out with (a) the __" It means you have left with or been given something good, surprising, unexpected or at a good price.
"I am going to hit the bakery right before closing and make out with a cake."
"I totally made out with the tires. They were on sale." "My parents bought me a car for graduation. I really made out."
With regards to the first comment, I guess it is because prepare is a different verb in Italian, although it does mean the same thing. For the second comment, I have only ever heard the phrase 'to make out with' in the sense of 'necking', i.e. kissing,hugging, etc., and have certainly never heard it used when referring to baked goods! :)
That's a good question. Maybe you only use fare in the context of eating when speaking of a particular meal (colazione, pranzo, cena), but it means 'making' for individual dishes that require preparation. Just a guess. Any more fluent speakers of Italian out there care to weigh in? :)
Fare is not quite synonymous with eat :) There are certain phrases you'll pick up such as fare colazione but think of that more as an occasion or an event. I'm having breakfast is similar: you can eat your granola bar on the train, but you would almost be joking if you called that having breakfast.