This is the 202nd most frequent Icelandic word.
búa
"To live," "to reside," or "to prepare."
Here, 'búa' (conjugated as 'bý') means 'live' or 'reside' and is used to describe dwelling or residing in a particular place.
Ég bý í Reykjavík.
I live in Reykjavík.
In this sentence, 'búa' means 'to make' or 'to prepare,' often used in the context of creating or preparing something.
Við vorum að búa til köku.
We were making a cake.
Here, 'búa til' means 'to create' or 'to formulate,' used when discussing the act of planning or devising something.