His meeting with Niguma came about in this fashion. After he had received teachings from many great Siddhas, Khyungpo Naljor again searched for highly realized teachers from whom he could receive more advanced instruction. The most realized teachers he encountered told him that one with his qualities should seek the great Bodhisattva who was not separate from Dorje Chang in her realization and in the profound teachings she could skillfully transmit.
Khyungpo Naljor asked where he could meet such an enlightened being and was told that her presence could manifest anywhere to highly purified beings. Unfortunate beings, those still caught in emotional afflictions, would find it very difficult to encounter her at all, since she had dissolved her physical form, attained the rainbow body, and achieved the level of Dorje Chang. Every now and again, however, she would visit the most sacred cremation grounds and, leading a host of dakinis, would preside over great ritual offering feasts (ganacakras). There someone might have an opportunity of seeing the great Niguma.
As soon as Khyungpo Naljor heard the name of the great dakini, he felt such devotion, like an electric shock, that tears swelled up in his eyes. Immediately he set out to find her at the great charnel ground called Sosaling. As he traveled, he continuously made supplications to the Three Jewels. When he reached the cemetery, he saw above him in space at the height of seven banana trees, a female deity bluish in appearance, who wore elaborate bone ornaments and held a trident and a skull. As he gazed at her, he sometimes saw one deity, and sometimes many; some were in meditation posture, and some were dancing or making graceful gestures. He felt sure that this was the great Bodhisattva Niguma, and began to make reverent prostrations to her, sincerely imploring her for transmission of the teachings.
On the day of the full moon, Niguma gave Khyungpo Naljor the empowerment and transmission of the teachings of the profound Dream Practice. In the middle of this, she said to him: "Son from Tibet, arise!"
Suddenly Khyungpo Naljor found himself in midair at the height of three banana trees. Looking up towards Niguma, he saw that the great being was on top of a golden mountain, surrounded by a vast retinue of dakinis. Down the four sides of the mountain, rivers fell. Khyungpo Naljor wondered out loud if this amazing mountain was truly there or whether he was witnessing a miraculous performance by the dakini.
Niguma answered, "When the ocean of samsara is turned over, when all attachment and ego-clinging are totally uprooted, then every place and every thing is covered with gold, forming a golden field of non-attachment. The actual nature of samsara, this phenomenal world, is like a play of dreams and illusion. When you have realized experientially that the play of the phenomenal world is nothing but a dream, or is like the illusion created by some magician, then you have gone beyond the ocean of samsara. This requires the greatest devotion to your Lama. Understand this. Now you must leave here. Go and grasp your dream.”
Khyungpo Naljor understood her instructions and entered the dream as he had been taught. In the dream state he was given full empowerment for the Five Golden Dharmas of Niguma. Three times in the dream he received the empowerments, including those of the Six Yogas of Niguma. At the end, Niguma told him this: "In this land there have been no other beings except yourself who received the total transmission of these doctrines three times in one dream.”
On the following day, Niguma once again gave him three times the complete transmissions, with the detailed explanations of these doctrines; this time the transmission took place in the waking state. One commitment she asked him to keep was this: only he and another Mahasiddha, by the name of Lavapa, had the transmission into the six doctrines of Niguma; the teachings should be kept secret until seven generations had passed in an unbroken line of transmission from one Lama to one chosen disciple in each generation. After the seventh generation, it would be appropriate to give these teachings more widely for the benefit of all beings.