He who knows Siva (the blessed) hidden in all beings, like the subtile film that rises from out the clarified butter, alone enveloping everything,—he who knows the god, is freed from all fetters.

In plain words: Shiva, the blessed God, is hidden in all beings. He is like the thin, rich layer that rises to the top of clarified butter, and he surrounds everything. Whoever knows this God is set free from everything that binds him.