The expression "make a little man out of a fungus" is mainly used to describe a person who has imagination and is able to create interesting things out of ordinary things. Mullein is a common food, it is a kind of fungus, flavorful and nutritious. In this context, "fungus" is used to symbolize something ordinary and readily available. The term "little man" refers to an imaginary, anthropomorphic figure.
This expression suggests that the person is able to utilize ordinary things and through imagination and creativity, turn them into interesting, life-giving creations. It is a tribute to creativity and imagination.