Steve and I went up on our ridgeline yesterday to take some macro shots, and I found these tiny, amazing fungi that appeared to have little rocks or eggs inside. My pictures didn't come out because the light was low and I was being stubborn about using my tripod. So, today I went right back up there again and specifically looked for this fungus and I used my tripod this time!! :P

This fungus measures about 1/4" in diameter and you must look carefully to see them! Their light cream-colored cups give them away and they can be found on rotting logs and bark. I find it incredible how much these tiny little things look like bird's nests with eggs inside, and it was no surprise to find out that was their actual name! The "eggs" are actually flattened spores!

I found a page that shows how huge an American penny appears next to this fungus to show you exactly how small they are, and the information is very good too! Waynesword: Bird's Nest Fungi. For more information, Wiki has a great page: Wikipedia: Bird's Nest Fungi

This image was taken on February 2, 2012.