There was a time when there was nothing. Universe and time did not exist. Only Shiva and His female form ‘Adishakti’ existed back then. They thought that some other person should be created who could shoulder the responsibility of Creation. Having resolved thus, Shiva with the consent of Adishakti smeared nectar on His left side limb. Immediately a male appeared from there. Shiva named him Vishnu.
Then by the grace of Shiva many water currents flowed from the body of Vishnu. Being enamoured of those water currents Vishnu slept over them. Since he slept on water, he came to be called ‘Narayana’. All the 24 principles evolved from Narayana. First came Prakriti, Mahat, Ahamkara, Manas, 5 panchendriyas (sense organs), 5 karmendriyas (organs of action), 5 tanmatras (sense perceptions) and 5 mahabhutas (elements namely – earth, water, air, fire and ether). These 24 principles cropped up by virtue of Shiva’s will. Narayana absorbed all the 24 principles within his bosom and at the behest of Shiva enjoyed a slumber in the holy waters.
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When Narayana was sleeping in the waters, a lotus of huge size came out of his navel as desired by Shiva. Brahma was created out of that lotus. Brahma tried to trace His Creator but he failed. As he climbed up to the lotus, he heard a heavenly voice asking him to undergo an austere penance for twelve years by which he would see the vision of Lord Vishnu. Brahma failed to recognize him and asked him who he was. When Vishnu introduced himself as the Omniscient God and his father, Brahma got offended and insulted him. Vishnu and Brahma had a great quarrel. All of a sudden a phallus emerged between them as a pillar which prevented them from fighting. They prayed to the phallus to reveal his secret.
Then Shiva emerged out of the phallus. He enlightened them both, saying ‘I alone am the Supreme Creator of the entire Universe. I alone assume the three forms Brahma, Vishnu and Mahesh. I am the Creator, the Protector and the Destroyer.’ Then Shiva entrusted the task of Creation to Brahma and the task of Protection to Vishnu and vanished. The phallus (Shiva-linga) got rooted there. Brahma and Vishnu worshipped the Shiva-linga chanting the Vedic hymns.