To say that Narayana who lies on the water of the universe holds the universe within his abdomen seems like a contradiction. A pot within a house cannot hold the house within it. One may reason that the spiritual body of Narayana holds an illusory universe within it, and is situated within another real universe. But if that is so, then Brahma himself cannot be really situated in the Lord’s abdomen. In order to establish the oneness of the universe within the Lord and that outside the Lord, he first established the mayika nature of the universe within the Lord. "O subduer of maya, in order to show that the external universe also exists within your abdomen, you produced an illusion for Mother Yasoda. By the influence of your yoga maya potency your body was simultaneously within the universe and spread throughout the universe. Similarly though I am within your abdomen, I arose from your abdomen and am situated here. Thus you are still my mother."

Your expansion was not in the water and was not the embodiment of the universe. You are the example of this. In three verses Brahmā explains that Kṛṣṇa is the supreme form using artifice. O Lord, destroyer of māyā! You cannot tolerate relationship with matter. You removed māyā from Agha and others. That is proper since you are the supreme, as Svayam Bhagavān. Commenting on the verse nārāyaṇe turīyākhye bhagavac-chabda-śabdite (SB 11.15.6) Śrīdhara Svāmī says that tūriya, the Supreme Lord, means “devoid of the upādhis of virāṭ, hiraṇyagrabha and kāraṇa.” You revealed your māyā by showing the externally manifested universe to your mother within your abdomen. That māyā was composed of water and other elements previously described. Or, you showed the universe which was externally clear inside your abdomen but then became unclear. atho amuṣyaiva mamārbhakasya yaḥ kaścanautpattika ātma-yogaḥ Has this been manifested by bewilderment of my intelligence, or is it some natural power of my child? SB 10.8.430 It was unclear since the vision was both limited and unlimited by the acintya-śakti. Therefore, that it was illusion created by devatās was rejected. Śukadeva says: na cāntar na bahir yasya na pūrvaṁ nāpi cāparam pūrvāparaṁ bahiś cāntar jagato yo jagac ca yaḥ taṁ matvātmajam avyaktaṁ martya-liṅgam adhokṣajam gopikolūkhale dāmnā babandha prākṛtaṁ yathā Thinking of the invisible Lord--who has no inside or outside, has nothing previous or after him, who existed in the past and will exist in the future, inside and outside of the universe, who is the universe-- as her son, appearing with a human form though he was beyond material senses, she tied him to the mortar like a normal child with rope. SB 10.9.13-14 Using logic in this way, she decided that it was not possible that the universe was under his shelter.

“Just as the water is real, the whole world is real. If that is so, does it not contract authorized scriptures and perception?” That is true, this world is illusory. That is explained in two verses. When you appear in the world as the subduer of māyā (māyā-dhamana) everything related to you is also beyond māyā. The worshippers of your avatāra are also beyond māyā. Eva here means although. Though you appear as an avatāra subduing māyā, certainly (hi) you manifest māyā. You are supreme controller of māyā. You manifested māyā (prakatī-krṭam). Being highly unsatisfied with his statement he gives this proof. Ca means even. You manifested even (krtsnaysa ca) the whole universe inside yourself. Or ca indicates the whole. The meaning is this. Though Yaśodā experienced world inside Kṛṣṇa as real, on not seeing it, it seemed false like a dream or magicians trick. Thus though the external world existed, she thought it also might be false. This māyā was conveyed by her (jananyā) to Nanda and others. The same occurred when Kṛṣna yawned while drinking milk. Or because Brahmā was omniscient and because the Lord gave him mercy at that time, he had both perceptions of Kṛṣṇa (inside and outside). You have manifested this māyā by showing yourself inside and outside to your mother (jananyā).