Red Mushroom is a low-light vanilla fungus, key Mushroom Stew ingredient, and grows into a Huge Red Mushroom with Bone Meal.
Guide
Sail or explore until you reach a Mushroom Fields biome where Red Mushroom spawns on mycelium in any light.
In caves and shaded areas check that light level is 12 or lower, then break Red Mushroom by hand for an instant drop.
Use shears on a red Mooshroom to drop a Red Mushroom and convert the mob back into a regular Cow.
Combine 1 Red Mushroom, 1 Brown Mushroom and 1 Bowl in any crafting grid to make Mushroom Stew.
Plant Red Mushroom on dirt, podzol or mycelium under light 12 or lower and apply Bone Meal to grow a Huge Red Mushroom dome.
Huge Red Mushroom growth needs free vertical space and low light, so cap your farm with non-transparent blocks.
Red Mushroom spawns in any block at light level 12 or lower and grows freely on mycelium in the Mushroom Fields biome regardless of light.
Red Mushroom is used to craft Mushroom Stew, Rabbit Stew, Suspicious Stew, and can be grown into a Huge Red Mushroom with Bone Meal.
Use Shears on a red Mooshroom — it drops a Red Mushroom and turns into a regular Cow, which is a renewable supply.
Place 1 Red Mushroom, 1 Brown Mushroom and 1 Bowl in any crafting grid, in any pattern, to get one Mushroom Stew.
Plant Red Mushroom on dirt, podzol or mycelium under light level 12 or lower, leave space above, and apply Bone Meal until it grows into a dome of Red Mushroom Blocks and Mushroom Stem.