Sheep

Sheep are, like pigs, cows, and chickens, a passive mob that first appeared in version 0.30. Unlike other mobs, sheep do not stray far from the area they spawn at; they move to an area with grass if they spawn in an area without grass,  however. They usually spawn in packs of 2-8. When sheep are hit they drop White Cloth.

In Survival Test, Sheep eat grass which makes the blocks Dirt. A Sheep's cloth grows back after they eat Grass. Sheep can be killed to drop Brown Mushrooms.

In Alpha, sheep act much like pigs, wandering and idling aimlessly. In this mode, sheep do not drop any food when killed.

Drops
Survival: Alpha:
 * 1-3 cloth blocks (on hit)
 * 0-2 brown mushrooms
 * 1-3 cloth blocks (on hit)