Garden Pests and Diseases: Strange fungus/mold with picture this time!, 1 by Shanny87

Shanny87 wrote:
Hi everyone,
I am trying to identify what this is growing on my soil (see picture). I have tried the cinnamon remedy with no success, I removed the top layer of soil and replaced it with new stuff only for it to come back a day after watering. I sterilized the potting soil in the microwave prior to planting and I only water when the soil is completely dried out. 50% of my plants have this. These plants were started from seed and are indoors under lights until I can plant them outside. The plants themselves are thriving and seem very healthy. Any ideas or advice? Will it harm plants in the long term, specifically peppers and tomatoes?