Krishna Premi had a very enlightening conversation with Bhagavan. He asked Bhagavan, “Is not the precept Sarvam Vasudeva Mayam Jagat, the most wonderful teaching of all time? It makes us think of everything in the universe as being a manifestation of the Divine Being, thus helping us to realize the omnipresent nature of God. Is that not wonderful?”
Bhagavan smiled at him and said, “Yes, there is no doubt about that. That is one of the basic tenets of the Vaishnava school, and all the great Vaishnava saints have preached it. But this can be carried a little further. You say, ‘I perceive Vasudeva in everything,’ but have you found out who this 'I’ is? Do all the creatures and objects in creation come to you, and do you include yourself? When you say, 'Everything is Vasudeva,’ do you not think of yourself as Vasudeva? When you are prepared to accept that plants, animals, and even inanimate objects are Vasudeva, why can you not think of yourself as Vasudeva? When you learn to perceive the Lord within yourself, you too become Vasudeva. Do you understand? When the seer identifies himself with Vasudeva, the seer automatically becomes Vasudeva, too.
This is what Sri Sankaracharya means when he says, Drishum Jnanamayam Krithva.” (perceiving everything through the lens of knowledge or wisdom.)