This is the sky blue mushroom (
Entoloma hochstetteri), a species of mushroom found in New Zealand and India. The small mushroom is a distinctive all-blue colour, while the gills have a slight reddish tint from the spores. The blue colouring of the fruit body is due to three azulene pigments. Entoloma hochstetteri is
not edible, but whether or not it is poisonous is unknown. This species was one of six native fungi featured in a set of fungal stamps issued in New Zealand in 2002. It is also seen on the reverse side of the $50 bank note, issued by the Reserve Bank of New Zealand in 1990.
Source: http://oddstuffmagazine.com/13-bizzare-mushrooms-from-around-the-world.html
