I always ate them. Didn't want to use too much heat and destroy the psilocybin (I knew someone who suggested smoking them. wtf.) And, I didn't want anything to go to waste since
Besides, from what I've heard shroom tea tends to hit faster, and I liked the slower waltz over to that feeling of euphoric and childhood magic.
If you've never tried it, you should. For me, it's a lot less gut rot, especially when taking heroic doses, and it's more enjoyable to consume - my tea tastes great.
I've never noticed any loss of potency, and i cook mine for a long time - minimum 30 minutes, more often 45. I cut them up tiny and put them in a coffee filter, tie it up, and drop it in. I'll also add real tea bags, sometimes ginger for the tummy ache, and a nice splash of orange juice for the way it increases potency. Lemon or lounge juice would work too, but would be too sour at the quantity required. You can then drink it hot or cold - i prefer cold.
Yes, it does come on a little more abruptly, but that suits me, i don't like to wait... hehe.. plus, i always smoked a joint while i was waiting for it to come along, so by the time it hit i was nice and relaxed. Herb and shrooms go wonderfully together.
And, no, i would never smoke them... lol... i don't even know what that would do. I know it's not good for your lungs, that's for sure. And the heat would obviously be much much higher than boiling.
I love psychedelics, but there's two on my bucket list that I've never tried: peyote and DMT. Peyote, because being high as balls for three days hasn't been an option for me, and DMT kinda scares me. The prep for that would have to be serious.