Choose a thick, shallow plastic box that is approximately 2 feet-by-3 feet and between 6 and 8 inches deep. Examine the box for holes or other damage. Place the box on a flat, hard surface, such as an out-of-the way kitchen counter top.
Place the rotted mushroom compost into a bucket. Add water slowly, mixing the compost with your hands, until it feels damp throughout but is not saturated. Transfer the compost to the box and spread it around with your hands.
Distribute the mushroom spores evenly over the top of the compost. Use your fingers to mix the spores into the first ½ inch to 1 inch of soil. Press the surface of the spore-filled compost flat with a 2-by-4 board.
Keep the temperature of the room with the mushroom box between 65 and 70 degrees Fahrenheit. Mist the surface of the compost well with plain water once a day. Watch the mushroom box carefully for two to three weeks, until you notice small white spores atop the compost.
Place the peat moss in the bucket and mix it with water until it is just damp. Squeeze out any excess water and spread the moss in an even, 1 ½ inch layer over the top of the compost. Spread a double layer of newspaper over the top of the moss and spray it lightly but thoroughly with water.
Mist the newspaper with water twice a day for 10 days. Keep the temperature between 55 and 60 degrees Fahrenheit. Remove the newspaper after 10 days but continue misting the compost twice a day for approximately two weeks, when your mushrooms will be ready to eat.