So I've been trying to breed a dragon with either fire breath or napalm breath and I'm having trouble even though my parent dragons seem to have the right genes to be able to produce children with the right combo. I'm beginning to think breeding doesn't work how I thought it did so I came to ask. 

When breeding a given pet, the offspring gets one gene from each parent in each category, yes? Is which gene is inherited from each parent random, or does the gene with highest power always get passed down?

It's random. Genetic power affects only the gene dominance but not theinheritance.

Oh thank goodness. That means I've just had bad luck so far. WHEW! My breeding project is not doomed. Thank you!