Questioner: How can one recognize Lord Shiva? Where is he?

Dadashri: The one who has become kalyan svaroop (an embodiment of salvation), is considered Shiva.
One is really Shiva but through illusion, he is jiva

Questioner: Why did brahma (soul) have to become jiva (embodied soul)?

Dadashri: You are shiva! But you are convinced that you are not; you have an illusion. You believe, “I am Chandubhai.” Do you have to believe this just because people gave you that name? You are shiva but only if you understand the difference between shiva and jiva.

Questioner: That is advaita (non-duality) is it not?

Dadashri: When there is no difference between jiva-shiva, then it becomes advaita (one, non-duality). Appearance of jiva-shiva as one, is non-duality. It is an illusion to see jiva and shiva as different.

Questioner: But how did atma, which would have been shiva, become jiva (mortal)?

Dadashri: It is because of the wrong belief it became jiva. Gnani Purush fractures this wrong belief and instills the right belief and then one becomes the Atma, Shiva himself.
It does not take long for jiva to become shiva, because he is Shiva to begin with. But he has come under the spell of illusion and that is why this wrong belief has been created. When the wrong belief changes and the right belief sets in, this puzzle will be solved.