Help with staff of herding

Console Discussion
I am having issues as to where/how to gather the mushroom and medal for the staff of Herding. I was hoping that someone out there would be able to explain it a little better or be able to walk me through it. I understand that it doesn't spawn all the time, I'm just unsure if we are even looking in the right area at the right time under the right circumstances. If you want to do this in game with me, I will be online about 7pm EST.

Same as the PC except no shin or rainbow.
Black Mushroom
Act 1, Tristram Cathedral [Level 1]
It will be glowing purple and easy to see.
If I recall correctly, it sparkles too.

This is the one I have the most questions about, do I have to "clear it" each time from fresh or just keep visiting it? Also, I was told that I had to trigger the next quest then revisit the Cathedral after clearing it once(I forget the name of the quest, but it's the once right after you clear it the first time).
If you don't find it after clearing the level then you have to reset the level.

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