The king then enters a pleasure-house or pavilion called the kelikailas or mountain of sport built for him by the minister.

It is a beautiful palace built of crystal, and decorated with statues and paintings.  One of the paintings is thus described: 

“There is your Majesty at pasa (dice) with the queen:  behind you stands one damsel with the betel box, whilst another is waving the chownri over your head:  the dwarf is playing with the monkey, and the parrot abusing the Vidushaka.”  The chamber also contains the portrait of Mrigankavali, the damsel whom the prince has really seen in his supposed dream.  There is also a statue of her, whence the drama is named Viddha Salabhanjika, meaning a curved statue or effigy.

The king discovers the statue.  He thinks, “Who will carve on the wall the person I dreamed of?  No one was present when I dreamt.  Has anyone carved the statue out of his fancy?  A real person may exist in this world or how can an exact figure come here?”

He now verily believes the dream to be a reality.  He then puts the necklace of his dream on the neck of the carved statue.

Finally the lady is herself beheld through the transparent wall of the pavilion, but runs away on being observed.  The king becomes enamoured of her.  He and his friend follow her but in vain.  The bards proclaim it at noon, and the two friends repair to the queen’s apartments to perform the midday ceremonies.

Kuvalayamala, the object of the king’s passion before encountering his new flame, is the daughter of Chandramahasena, the king of Kuntala.  She has been sent to Vidyadhara Malla’s queen, as the betrothed bride of the supposed son of Chandraverma, who is the queen’s maternal uncle.  Mekhala, the queen’s foster-sister, practises a frolic on Charayana.  He is promised a new bride by the queen, and the ceremony is about to take place when the spouse proves to be a “lubberly boy”; he is highly indignant at the trick, and goes off threatening vengeance.

The king having followed and pacified his companion, they go off into the garden, where they see the damsel Mrigankavali playing with ball:  she still however flies their advance.  Presently they overhear a conversation between her and one of her companions, from which it appears, that notwithstanding her shyness she is equally enamoured of the king.

Her dress is the contrivance of the minister, at whose instigation, Mrigankavali is persuaded by Sulakshana to believe that she is to behold the present deity of love, and is introduced by a sliding door into the king’s chamber.  The consequence of the interview is to render Mrigankavali passionately enamoured of the king.

One day, the queen, in order to deceive Charayana, manages to celebrate a marriage between him and a son of a maid-servant veiled as a female.  The trick is discovered.  He is highly indignant.

He now retaliates with the help of the king.  He induces Sulakshana, one of the female attendants of the queen, to ascend a Bakula tree and thence send a message in a nasal tone, as if from the sky, to Mekhala, the foster-sister and chief attendant of the queen.