Bimba Pratibimba! The world is created by Shiva Lila.

A lot of people, especially spiritual seekers often ask , "Why did God create the world?”
Shaivites say, Shiva creates the whole world out of a play, a lila, just to know Himself and expand Himself, by enabling what all can be done in life . He does this through His Shakti, His Divine power,  His " Ability to do". This Shakti is not only the core power and energy at the deep center of all things in the  entire Universe, She is also the devoted Bhaktini and Maha Yogini Parvati, Shiva’s beloved wife.

The important understanding of the Kashmir Shaiv Darsana , commonly called  Kashmir Shaivism,  is that Lord Shiva creates the Universe to be able to see His own Self in a myriad of lilas. The world, is His mirror! Now, the rishis of Kashmir had a term, ‘Bimba’. Bimba is the real Self , or Shiva Himself, in His supreme transcendent formlessnes .
And the whole manfest world is Pratibimba.
Pratibimba is the reflection of Bimba. This Non- dual school of Shaiva philosophy further states, that the eternal subject ( Bimba) sees Himself in the reflection ( Pratibimba).
So, Shiva ‘sees’ Himself in the world that He Himself creates.
Parvati is the swaroopa (embodiment) of His Shakti , and we sometimes see a very beautiful portrayal of her as holding a small mirror  to Shiva as He dresses up; So this holding of a mirror to Him means, she is the one who shows Him what all He really is.
This entire Universe is a mirror that shows God what all He is, and it is God's Shakti which 'holds' the mirror up!
And this is the summary of the world play, from the perspective of Divinity ,enlightenment, an awakened mind, an aware Atma (soul), and of the ancient hindu rishis.
And of course, Shiva is the highly awakened Atma; He is Para Atma ( Master of souls-GOD ).
It may interest you to know that not only is Shiva the greatest Yogi ( One who is in conjunction with His own Godliness), but He is also the greatest bhokta (experient ) of worldly flavour.
The Kashmir Shaiv Darsana : Kashmir Shaivism speaks of this , and says Shiva is the Para pramatra- the highest experient .
Such is the Maya of Shivji that He can actually enhance His Yoga even through bhoga ( bhoktan) of the Universe that He Himself creates. But His bhoktan is always steeped in God consciousness. Even in this material world, in any activity, Shiva is always centered on Godliness! And this teaching is shared in some of His yoga dharanas to Devi in the Vijnanbhairava texts.
So, Kashmir Shaivism has a unique way of explaining the Creator and creation, God and the world. When  all of the world, is actually a reflection of God and  Lord Shiva is not only the Best Yogi, he is also the Highest experient, the greatest Bhogi of all. It is Shivji who experiences the most in all things, and that is the play of His own Shakti, that is indeed Lila. Through these worldly, experiences, He "Re-cognizes" His own Divinity in many many ways, and then further improves the Universe.

The Siva Sutra in verse 11 states “ त्रितयभोक्ता वीरेशः”
Tritayabhoktā vīreśaḥ,  Shiva is experiencing Himself in all three states of waking, dream and deep sleep. Through all His experiences, Shiva is always centered in His Divinity, and the worldliness never draws Him away from the reality that He has always been, The Supreme.
Aum Namah Shivaye!
~  Shail Gulhati is the author of the books :
SHIVA, The Ultimate Time Traveller.
The Yogi and the snake
Shiva Poetry
NAAM ROOP- A Tribute to the Divine
And Life Said.