I buy Scott's Progrow potting soil mix. This is peat/verm based. I add verm to it to bring it up close to 50/50 peat/verm.
It needs to be pasteurized same as straw, 160 degrees for one hour. If you soak it in water and let it drain for a day it is still a little wet for casing... I sterilize mine. I fill half a pillowcase and put it in my pressure cooker for 30 min, then wet it with cold water and ice cubes to get the temp down and mositure up... You want it just wet enough to squeeze drops out of a tightly balled fist.
Lime... Depends on the type: slaked, hydrated, powdered stone... Two cups of powdered stone per half bag of Scott's Progrow seems about right.