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White fungus has been prized for its medicinal benefits, namely anti-inflammatory and anti-tumor. In Chinese families, it is commonly used in soups cooked for soothing purposes like nourishing the bodies, healing dry coughs and clearing heat in the lungs. White fungus with rock sugar in a sweet soup or with chicken in a savory version are among the popular ones. Occasionally, you may also see it in stir-fries, vegetarian style in particular.