Small fluffy mushrooms covering variagated dogwood stem

[jennaccc]

I have small, (about 4mm diameter each) mushrooms in clusters on the stem of my variegated dogwood. They have a fluffy white bit that attaches to the plant, and a sort of crust or cap, that doesn't get any wider than the fluffy white bit. The colour combination is something like a coconut.

What is it? What do I do?

Your help is much appreciated.

[applestar]

Most of the time, mushrooms don't grow on trees unless the branch is dead. Is the dogwood growing beyond where these mushrooms are?