Baba states, 'Know that my form is pure knowledge, consciousness, or the cloud of bliss.' What is the significance of this statement?

This powerful declaration from Chapter 19 signifies that Sai Baba's true, essential nature is not his physical body but the formless, ultimate reality. By identifying his form with pure knowledge (consciousness) and bliss, he is guiding devotees to look beyond the physical and meditate on the supreme, non-dual Self. He encourages constant meditation on this formless aspect to attain spiritual realization. However, understanding that this might be difficult, he also provides the alternative of meditating on his physical (Saguna) form as a means to achieve the same end goal: the dissolution of the ego and merging with pure consciousness.