The cartoony mushroom from Mario games has become a cultural icon of Nintendo fandom and retro 8-bit style. Now you can knit yourself a small toy or desktop accessory as an emblem of your gaming glory or nerd style pride. Or knit one for the child or the grown-up kid in your life, as a reminder that life should be colorful and problems should be solved by
jumping on your enemies. Gauge isn’t critical for this pattern, so you could use a heavier yarn to make bigger mushrooms.
The models shown are two to three inches tall in fingering weight yarn. The yarns you choose should be knit on smaller needles for a tight fabric, so that no stuffing peeks through the cracks. This project requires a small amount of stranded knitting, but it would be a good first project for colorwork since the floats are hidden in the inside of the cap.

This project was also featured on Kotaku.com:
http://kotaku.com/344277/knitted-mario-mushrooms-in-the-wild