The frosty funnel (Clytocibe pollyphila) is widespread and qiite common being found predominantly in broad-leaved woodland, especially where beech and/or oak are present, but also occors in coniferous woodlnd. They grow in late summer and early autumn on soil where there is not too much leaf litter.
They have an undulating cap with a slightly rusty centre, almost as if water has collected in the middle at some point and started the rusting process! Why, then, is it called the blue spot knight? Often they have have blue 'spots' on the outside edge of the cap when mature. Naturally the one I found and photographed does not show this!
They are apparently edible although a bit tough and stringy, think I'll stick to shop mushrooms!