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Level 1 - TCUFONIN
The answer to this puzzle is:
Words: UNCTION, NUNCIO, CONFIT, CUTIN, FOUNT, ONTIC, NITON, CONIN, FICO, FOCI, CONN, OTIC, CION, CUIF, CUNT, COFT, FOIN, CONI, UNCO, COIF, FINO, UNTO, COIN, ICON, INTO, CUT, FIT, COT, NUT, FUN, TON, CON, ION, TUN, NIT, FIN, OFT, NUN, TIC, INN
Bonus words:
UNCTION, NUNCIO, CONFIT, CUTIN, FOUNT, ONTIC, NITON, CONIN, FICO, FOCI, CONN, OTIC, CION, CUIF, CUNT, COFT, FOIN, CONI, UNCO, COIF, FINO, UNTO, COIN, ICON, INTO, CUT, FIT, COT, NUT, FUN, TON, CON, ION, TUN, NIT, FIN, OFT, NUN, TIC, INN