Cordyceps militaris

Cordyceps militaris (red caterpillar) is an ergot-like fungus that parasitizes the pupae of butterflies. Most commonly, it is found on lichens. These pupae are hidden in soil, smouldering wood or moss.
Cordyceps militaris grows mainly in deciduous and mixed forests. Less frequently, it is found outside the forest in places where host insects are present. It can be found in lowland and higher ground from June to December. The mushroom is not edible.
The fruiting body of the mushroom grows out of the soil, out of the host pupa, and grows only about 20-60 mm above ground. The fruiting body is irregularly club-shaped or cylindrical, flattened, and rough. It is dark orange to red in colour. The mushroom spine is cylindrical, glabrous and lighter in colour than the fruiting body, remaining in the soil as deep as the host larva/ pupa was.
Although the mushroom is not edible, it is widely sought after because, like its fellow Cordyceps sinensis, it is used in traditional medicines.