For one who has become aware of the fact that, the true self is not physical but true self is formless consciousness, he realizes that, his body and his experience of the universe is mere mirage created out of consciousness. Due to ignorance of the true self he experiences the illusion (body + universe) as reality. He is fully aware of the fact that all distracting wrong knowledge based on false self within the false experience is unreal. The unreality is created out of consciousness, which is ultimate reality. Thus he is fully aware of the fact that, everything is consciousness and consciousness alone is real and all else is falsehood.
Becoming aware of the fact that, consciousness is the true self in the midst of waking experience through wisdom is self-realization. By realizing the consciousness as true self one becomes free from experiencing the illusion as reality. The waking experience becomes unreal on the standpoint of the formless true self.
The dream becomes unreal when waking takes place. Similarly the waking experience becomes unreal when one becomes aware of the fact that the waking entity is not the self.
As long the illusion lasts the duality remains as reality. a Gnani is fully aware of the fact that his body and the his experience of the world are mere mirage created out of consciousness. Thus he is fully aware of the fact that the consciousness is the true self and on the standpoint of the consciousness as self, the three states are unreal.
Thus the individual experiences within the waking experience are as real as dream. Thus limiting the self to individual and trying to assimilate Self-Knowledge or Brahma Gnana or Atma Gnana is like try making ice without the water.
