Select a level with a white Toad marker. Listen for Toad when the level starts then break the "?" block that he is inside to free him. Reach the end of the level to make a mushroom house appear. The following types of mushroom house with a mini-game or reward will appear, depending on the last number of the timer when you collect the flag to end the level.
Green house with 1-Up Cannon mini-game: Last number of the timer is 0, 1, 2 or 3.
Red house with Match mini-game: Last number of the timer is 4, 5 or 6.
Gold house with Star reward: Last number of the timer is 7, 8 or 9.
Successfully complete the game to gave all Mushroom Houses in Worlds 1 through 8 reappear.