Puffballs are easy to identify for the beginning mushroom hunter because there are no poisonous species. The larger puffballs grow on composted soil and meadows. Fist-sized or larger puffball mushrooms are unmistakable. Puffballs grow on the ground or on dead wood. The best time for finding puffballs is in the fall.
They must be all-white inside. Any shade of yellow or purple makes them inedible. When you cut a puffball open, you’ll find no stem and no gills inside.
Peel the outside cover off before preparing. You can saute them, simmer them in soups, or cook them with grains. Dip slices in a batter of egg and milk and cover with bread crumbs seasoned with salt and pepper and fry them up in butter or oil. They have a very earthy flavor and the unique taste will not disappear in a dish.
Check out this video for 3 ways to cook this delicious variety of mushroom: http://youtu.be/rEIemg1EwhY