This is an interesting fungus because it grows and encompasses grass stems and leaves. Weird. If you cut it the cut surfaces turn a deep red colour. It is quite leathery. Plus appears to go quite knobbly as it gets older.
A mushroom (i.e. cap on stem, gills below the cap) does a lot of tissue differentiation in getting to the button stage. Up till then there has been much addition of new cells, but after that it grows by cell expansion. Any grasses, leaves, twigs, etc that get in the way are pushed aside as the cells expand (though, in the case of those species with sticky caps, bits of grass and twigs can get stuck to the cap surface – and if the obstacle is too heavy to be pushed aside the mushroom will be forced to expand in a distorted way). By contrast the firm polypores such as the one in this sighting grow by constant cell addition. When the growing edge meets an obstacle (e.g. a grass blade, twig, stone) cells continue to be added around the obstacle. The obstacle is not pushed aside by expanding cells. The growth continues and you are left with grass blades, twigs , stones, etc embedded in the polypore.