When thoughts arise, there is something to observe them.

The realm of consciousness is much vaster than thought can grasp. When you no longer believe everything you think, you step out of thought and see clearly that the thinker is not who you are.

– Eckhart Tolle

If I am the observer of thought, then what is the thinker?  What is this force creating the thoughts that I am observing?  Is this from a mind-body physicality?  The interface into reality.  Think about this.  A system receives input from an outside source through a defined interface.  The TV receives input from a cable to display a picture.  The mind-body acts as an input source to the observer.  The senses pick up energies from particles in the surrounding area.  The mind interprets the sensory input and makes decisions and judgments.  It recalls past events or similar patterns that it has seen.  The soul observes that whole process, but can also become attached to it.

If there were nothing but thought in you, you wouldn’t even know you are thinking. You would be like a dreamer who doesn’t know he is dreaming. When you know you are dreaming, you are awake within the dream.

– Eckhart Tolle

If we are in a dream, then it is a self-recursive one.  The dreamer is creating the dream and the dream is creating the dreamer.  I imagine that awareness sits in the middle of that cycle, not showing favor to either the dreamer or the dream.  Not caring if it is observing the creator or the created.  Or maybe not seeing any difference.

So, again, there are all the major problems of life, and they are complex – one must come to them very simply, not demanding a thing. Then one discovers for oneself a state of mind that is not touched by thought, a totally different dimension that man is always seeking. It is only when one stops seeking, and faces the fact of what actually is and goes beyond, that one will discover it for oneself.

– Krishnamurti