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Common Name:Witch's Butter
Genus / Species:Dacrymyces palmatus
Photo:

Three Mile Lake Trail - - - - November 11, 2007

Notes:An edible jelly funi that grows on dead conifers. Also known as Fairy Butter. Tremella mesenterica is also called Witch's Butter, but is slightly larger and grows on hardwoods.
 
Reference:Mushrooms Demystified by Arora / Peterson Field Guide to Mushrooms by McKnight