Proliferodiscus pulveraceus

The fruitbody consists of a shallowly cup-like apex atop a short stem. The cup may be up to a millimetre in diameter. The upper surface of the shallow cup is smooth and greyish-yellow. The rest of the fruitbody bears a dense covering of very short hairs, that give an impression of a furry or granular, greyish to bluish grey coating.    

Frutibodies often grow in groups and more than one cup may grow from the one stem. Sometimes a new cup grows from the margin or surface of an older one.

The fruitbodies are found on dead wood.

Look-alikes

There are a number of similarly small, greyish-haired, cup-like species. This is probably fairly distinctive if seen with cups growing on cups, but there is still much to be learnt about such small cup fungi in Australia.