These are silkworm caterpillar that were inoculated live with Cordyceps militaris. The result are these fully myceliated silkworms with multiple Cordyceps ascocarp (fruiting bodies) emerging. This is a dried product. 

Cordyceps is a supreme yang tonic--the result of growing cordyceps on true-to-wild, insect substrate, which are much richer in protein and more yang in nature than grain, in addition to being alive when infected, is that a much more yang nature is imparted to the herb. This the closest thing to true, $10,000+/kg wild cordyceps there is. Silkworm Cordyceps is 1/10th or less the cost of wild cordyceps and offers a true-equivalent--while wild cordyceps is facing extinction due to overharvesting. 

Silkworm alone are commonly eaten in Asia. Silkworm is also a common herb in TCM that does not contain any of the toxicity of the other insects found in the Chinese Pharmacopoeia. Of course, the makeup of the insect is completely altered by the invading Cordyceps.

Photos of actual product dried in final photo.

Suggested use: powder with mortar and pestle and steep in barely boiling water for 20-30 minutes. Filter the tea with a coffee filter and enjoy.