Srishtikarta Lokeshvara.
Greystone standing 4 arms Avalokiteshvara - Shiva (Srishtikarta Lokeshvara) * The Buddha describes that Avalokiteshvara by his Skillful means takes numerous forms like that of a Pratyekabuddha, Shravaka, Brahma, Yaksha, Gandharva including Shiva to teach the Dharma to the Sentient Beings. It must be noted that Shiva is not specifically discussed here, he is just included as a passing reference among all other emanations of Avalokiteshvara.
It can be considered that, at this time the Buddhists had begun to consider Shiva as an emanation of Avalokiteshvara.
Karandavyuha is one of the major Mahayana sutras that is devoted completely to Bodhisattva Avalokiteshvara.
It attempts at assimilation of the all the Brahmanical deities at one go, by establishing Avalokiteshvara as the progenitor of those deities. The Sutra starts with the Nidāna – Evam Mayā Shrutam [Thus, It was heard by me ] – The Buddha residing at Sharavasti, in the Garden of Anathapindaka along with a host of Bodhidhattvas and Bhikshus.
The Deities of the heavenly realms are shown to attend the Buddha’s Sermon, headed by Vishnu and Shiva. Shiva himself is potrayed as attending the Buddha’s sermon. In the Fourth Chapter of the Sutra on the Creation of Moon and others [candrādyutpattirnāma caturthaṁ prakaraṇam ], the Buddha explains how Avalokiteshvara assumes the form of Srishtikarta Lokeshvara to emanate all the [Brahmanical] deities from His body Specifically, Buddha says that Shiva was born from Avalokiteshvara’s forehead – lalāṭānmaheśvaraḥ.
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