What is Illusion?
Illusion is where one is bound to:
v Form, time and space
v Birth, life and death
v Pain and Pleasure,
v Burden and bondage
v Waking, dream and deep sleep
v Universe/Mind /Duality
Illusion is created out of consciousness. Because of ignorance the illusion is experienced as reality. Illusory reality deludes because I is based on egocentricity. In egocentricity one does knows not the ultimate truth and permanently remains in ignorance.
Thoughts arise to the person within the waking or dream. Thinker is the form. Without the form the thinking is impossibility. Thus thinker and the thoughts are part of the known. The witness of the knower and the known including the world is the formless soul.
Thoughts and thinker are present only when the world is present. The world is present only when the waking experience is present. Waking experience is mere illusion from ultimate standpoint. If the waking experience is mere illusion then the thought, thinker and the world are mere illusion.
Thought, thinker and the world are nothing to do with the formless witness. The witness is that witnesses the thoughts, the thinker and the world together. The thoughts, thinker and the world are one in essence. And also the three states are one in essence. That essence is consciousness. The consciousness (soul) is the innermost self. The consciousness is the ultimate reality or Brahman or God.