KOH mount preparation involves mixing specimens like skin or nails with 10-20% potassium hydroxide solution to clear tissues and cellular debris, allowing visualization of fungal hyphae and spores under a microscope. Papanicolaou stain uses acidic and basic dyes to stain cell nuclei blue and cytoplasm colors, aiding identification of candida species. India ink preparation detects encapsulated yeasts like Cryptococcus neoformans in cerebrospinal fluid by staining the background ink black and leaving the capsule clear.