Thought I'd give more in depth instructions to find the big mushroom since I struggled with it for a while. (Note: Big Mushroom is different than the one in the early game you need to make the cure) . Instructions were made in version 1.0.3 of the game.
1. Go to the Grotto/Cave in the southeast of the village (go as south in the village as you can, then head east across a bridge and enter the cave) You will need to have tea to get through the poisonous mist, or clear it out later in the game.
2. Head east in the cave until you meet the first ladder and go up it.
3. Continue east until you happen upon some scale-able rocks and head up them.
4. Begin heading west, staying as high as you can. This will require some platforming. If you pass a divet/crack in the ground, you are still heading the right way.
5. Continue west platforming your way to the best of your abilities. If you're noticing glittering rocks you are succeeding. It is easy to fall to the lowest level where the entrance was, so just do your best.
6. Eventually there will be the Big Mushroom