This terrific post is sourced from Milkwood.net - one of my favourite sites. Be sure to check their site out (a special thanks from Permaculture Ideas for all your hard work - you're an inspiration!)
How to get rich quick by growing shiitake mushrooms. Or you could just eat them instead. Much better.
Making a shiitake log: materials
Making a shiitake mushroom log: method
Our freshly-cut eucalypt logs, ready for action. Photo by Cathy x
The shiitake plug spawn. Photo by Cathy x
The spawn: The basic idea here is to fill the holes in the log with shiitake spawn (mycelium). Plug spawn (shiitake spawn that has colonized a wooden plug) is one way of doing this. Colonizing sawdust with shiitake spawn, and putting that in the holes, is another way. We used plug spawn, which Will Borowski supplied.
Tapping the plug spawn into the holes we drilled. Photo by Cathy x
Inoculating the log: This was the fun part. You take a spawn plug and tap it into the hole. Ta da! One innoculated log. Repeat until you run out of holes.
Sealing each end of the log with melted beeswax
Painting beeswax onto the holes, with plug spawn inserted, to seal them. Photo by Cathy x
The final product, hopefully. Photo by Mushroom gourmet.