Lesson 124 about Cosmic Delusions brings up an interesting point about matter. Instead of denying the existence of matter Yogananda says;
"We should develop our consciousness to that point wherein we can know that mind and matter both exist, but are not as we think they are." He further defines the terms avidya and maya. Avidya, or illusion, is an error entertained by one person and maya, or delusion, is an error that deludes all mankind.
God is dreaming the dream of cosmic motion pictures on the screen of delusive human consciousness. When one unites his own consciousness with God's, he percieves this cosmos as God's dream going throigh his mind. But no one can experience
this realization unyil he experiences his complete unity with God. Just as a dreaming person does not know that jis dream of a city containing buildings, streets, and lights is made up only of different vibrations of his imagination, frozen into thought forms, so one who is under the spell of the cosmic selusion does not sees thay it is only God's dream.