Soak dried mushrooms in warm water for 30 minutes. Drain and slice, trimming off any tough bits. Set aside.
In a large skillet or wok brown the steak over high heat with 1/2 tablespoon oil, 2 minutes each side. Remove the meat from the skillet and quickly slice into 1 inch cubes, retaining the meat juices. Set aside in a bowl.
Add remaining oil to the skillet, and stir-fry together the dried mushrooms, garlic, gingerroot, fresh mushrooms, snow peas, water chestnuts, and bamboo shoots for 2 minutes.
Add soy sauce, sherry, hoisin, and sugar and stir-fry for 1 minute.
Add cubed meat and juices and stir-fry for 2 minutes.