Strange Fungus quest requires you to kill some monsters, which in our case are Growlers. You can find growlers in Whispering Woods.
You can port from the gatekeeper or directly walk to the Whispering Woods.
I demonstrate how to kill mobs using spiritshots and not using spiritshots. When you use spiritshots your skills will have double power.
You can also see a beautiful display of Daisee in full screen. I used ALT+H.
Once you gather all the quest items , you have to return to the NPC you took the quest from.