I've never cut the oil with anything - use it straight up. I slather it on the bare wood - everywhere, for about five minutes, and then let it soak up for ten, then slather it on again and let it take up as much as it will. After about fifteen minutes, I wipe off as much as I can with a dry cloth, and let it cure for 24 hours. then it's one thin wipe every day for as long as I feel it needs to get the finish I want. Sometimes, I cut it back with oooo steel wool, and apply a few more coats. I find it to be one of the best waterproofers I've found, and gives a nice mellow finish.
I will look for Circa 1850 Danish Oil, on your suggestion.