Interesting find and great detail. With all that hair, I'm wondering if it's hairy curtain crust, usually and orange colour so may change colour as it grows? Though that fungus does usually grow on dead wood so if the tree is living, perhaps not!
@tinley23 Ah, I wasn't sure when I said it. It's definitely a bracket fungus of some kind, could also be turkey tail. Bracket fungi usually grow on dead or decaying wood so it may be a sign your lilac tree is nearing its end, sadly.