This species found it's way into the "Mystery Fungus" page in Spring of 2001, because the young specimens that I found, pictured here, bore little resemblance to the more mature specimens pictured in my books. Mihkel Lepson correctly identified this fungus, so I have added it to the gallery. Because of the distinct velvety texture, I still suspect the possibility that this species could in fact be Panus rudis (the hairy form of P. conchatus) but the texture of these specimens falls between the two descriptions.
Description: These specimens were fruiting in the Springtime, in a redwood grove on the San Francisco peninsula, from the fallen trunk of a Douglas Fir tree, heavily covered with sphagnum moss. They had lilac colored narrow decurrent gills, and lilac "skin" or outer flesh, with pure white inner flesh, which exhibited no staining reaction. The caps were slightly more tan colored than the gills, and the entire surface of the mushroom had a smooth velvety covering. Spore print is white or light tan in color. Flesh is firm but not dry or corky, odor mild, mossy, taste slightly bitter. Size ranging from 1-5 cm tall, caps of these specimens ranging from 1-6 cm wide (Apparently up to 17 cm wide in maturity.)
As this species ages, it turns more tan to buff, and the cap becomes more wavy. Apparently it is edible, but the texture becomes tough.