tasmai namo vraja-janaiḥ
saha cakra ātmanātmane
aho paśyata śailo 'sau
rūpī no 'nugrahaḿ vyadhāt
tasmai -- to Him; namah -- obeisances; vraja-janaih -- with the people of Vraja; saha -- together; cakre -- He made; atmana -- by Himself; atmane -- to Himself; aho -- ah; pasyata -- just see; sailah -- hill; asau -- this; rupi -- manifest in person; nah -- upon us; anugraham -- mercy; vyadhat -- has bestowed.
It is clear from this verse that Lord Krishna had expanded Himself and was appearing in His normal form among the festival-goers of Vrindavana while simultaneously manifesting Himself as the great form of Govardhana Hill. Thus, in His form as a child, Krishna led the residents of Vrindavana in bowing down to His new incarnation as Govardhana Hill, and to all He pointed out the great mercy bestowed by this divine form of Govardhana. Lord Krishna's amazing transcendental activities were certainly in keeping with the festive atmosphere.