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Compressed tea is common in the west and south-west China. It should be stored in contact with air at room temperature to allow continuous fermentation.
Although KungFu brewing is fine, best way to prepare compress tea is to boil (unusual way to prepare Chinese tea) it in order to extract full flavor out of the tea. Very "tough" kind of tea it is.

 

Tuo Cha (Peg-top Tea)

Tuo-Cha Tea is reputed by many to lower cholesterol levels and an excellent tea to accompany greasy or fatty meals. Very strong and black with a unique "earthy" flavor and aroma (from its time spent aging in a cave), it is compressed into tiny individually wrapped "bird's nests" or bowls, hence the name "tuo cha" or "bowl" tea. Tuo Cha is an ideal after dinner tea to aid digestion and breakdown fats.