Lightly rinse mushrooms with cool water and pat dry with paper towels.
Heat wok or skillet over medium high heat. Add oil, rotate to coat sides of skillet.
Add garlic and mushrooms; stir-fry until mushrooms are slightly browned, about 2 minutes. Season with salt and pepper.
Add soy sauce, vinegar and bay leaf. Without stirring, bring the mixture to a boil, reduce heat, cover and let simmer until mushrooms are tender, about 10 minutes. Add sugar and stir to combine.
Transfer to a serving plate and serve with steamed rice.