Got it! Sometimes my memory needs some time to recall things from the past (almost 20 years after all) but it does work quite nicely: Yendorian Tales
Correct and color me impressed, I think it's a fairly unknown game.
In late 90s I was mostly playing RTS games but when I didn't, I played RPGs that were similar to M&M series...
New one is up :) I'm sure at least one user here will recognize it in a split of second ;)