This method has been used with many plants accross the world throughout history, some of which (Absinthe & Green Fairy) are still popular today. Also, there are some who argue that the Wine from Eleusinian and Dionysian Mysteries as actuly used as a preservative for entheogens (most likely mushrooms). This is for information purposes only and the words "I" and "you" are used in reference to people living before the media hysteria surrounding drugs. Also be aware that even if the plant you're using is legal, the chemicals inside them may not and this method could potentially be classed as "extraction".
All you will needs is;
1) Alcohol - Although I've only tried wine myself, I find it hard to believe others won't work the same exept that stronger alcohol will probly absorb more psilocybin.
2) A container large enough to hold all the alcohol - An empty (and clean) 2 litre bottle will do for one bottle of wine. Remeber that once you add the mushrooms the mass will be slightly higher so don't fill the whole thing up.
3) A funnal - Just something to help you pour, plus you probly don't want to be walking around stinking of booze all day
4) Mushrooms - Peyote or Marijuana will also work, but mix them at your peril. If you're making seperate batches with different plants be sure to label each one. (Maybe other plants will work too, if you know any please comment)
First off you sould work out your doses. If your not sure what kind of dose you'd normally take then I reccomend that you don't try this 'till you do. If you're using wine, you'll probly be getting about 4 -6 glasses from each bottle. This means you should put 4 - 6 doses in each batch.
Cool, so now get your mushrooms. If they're fresh, chop them into tiny peices, if they're dry, grind them up. This will help them be absorbed more quickly. For me, 1.5 grams is a decent dose, and I get about 4 glasses a bottle, so I want 6 grams in each bottle. If you're using stronger alcohol you could potentially get 20 to 30 doses in one bottle considering the smaller glass size.
Although you can mix them all together in one large container, I tend to keep them in seperate bottles so it's easier to measure back out later. Pour your wine over the mushroom powder, don't worry if it all sticks together, then screw the lid tight.
Leave the mixture(s) in a cool dark place. Shake it as often as possible, once a day at least, for 2 weeks. The longer you leave it and the more you shake it the better, but it probly won't last forever so be sure to drink it within a year.
If serving to others, I reccomend filtering the mushrooms out of the wine and putting it back in it's origonal bottle, but be clear about what's inside it. On the other hand, this same ambiguity can be bonus though, since going to a party with a bottle of wine is seems perfectly natural, but going with a bag of mushrooms may call on some unwanted attention.
If you want to get the most out of your shrooms, you can eat the remaining material, but there will be very little psilocybin left and they will look/feel/taste horrbile.
You can also boil the resulting mixture down into something more 'pure'. Personally I don't see the point in doing this esspecially since you'd probly loose a lot of the actual drug with such a crude extraction.
That's all there is to it really, I can't really say the effects are much different to taking them normally exept the slight buzz of one or two glass of wine and maybe a fast come up. But it can be more fun and it's also more tactful in public or for taking on holiday.