Yes fairies can sometimes be found living in mushrooms
They are if you believe they are.
Fairies do live in Australia but most of the fairies live in Amercia. ALL fairies live in your mind.
yes fairies can live iside
They can. A good way to discover whether you already have fairies/faeries is to walk outside after a rain. If you see what is commonly known as a "faery ring" (a large circle defined by mushrooms), then it is likely that they have been celebrating in your yard.
Nowhere. Fairies do not exist.
probaly fairies that live in the woods
No, fairies don't exist.
Fairies live in trees.
Pixies live in meadows, fairies (more properly) live in and around flowers.
Fairies live for thousands of years unless fatally wounded.