Collins Complete Guide to British Mushrooms and Toadstools describes this fungus as common and widespread, growing on the dead wood of broadleaved trees (Sterry P. and Hughes B. 2009). I have it on good authority (my wife) that if you lightly flick the fungus - the spores come out of the top like smoke - apparently I missed this little trick - and the fungus itself - at the last Swanwick Lake fungi foray.
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