The trick is to not explore. I set myself up in the middle of a larger room near the roof of a cave with some dirt 3 spaces up my back so nothing could hit me from behind. Then I just held down the attack key with my Muramasa. I would periodically jump down and get my money and whatnot from the kills.
My mushroom farm is going slow. The blue junk spreads soooooooooo slowly.
Edit: Also...
There is a big room that I left open at the bottom because I was hoping that some of those big mushrooms would eventually grow like they have naturally in the mushroom caves but I doubt that will happen. Buuuut, I'll leave it there for a while and see if it does it anyways.
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