The Source

 The whole creation came from Consciousness, expressing Awareness, then materials world was projected based on intelligence , then came the mind to feel the creation through the physical body.  

This whole Universe is only Consciousness. Consciousness in material dimension is Awareness and Energy, which is called Purusha and Sakthi Respectively. Purusha and Sakthi is represented as Shiva and Parvathi. Without Awareness Energy cannot Manifest and vive versa. This is why they are represented as Half and Half (See symbolism of Trinity Gods).

Brahmam Satya Jagath Mithya:

Very often this Vedic statement is misunderstood. Satya is something that does not depend on anything else for its existence and Mithya is something that depends on something else for its existence. For example, in a clay pot, pot depends on clay for its existence. Without clay there is not pot. But the clay can remain as it is and does not require the existence of pot for it to be called as clay.

   Same way Brahmam exists as it is and is therefore called Satya or real, whereas the Universe (Jagath) requires Brahmam for its existence and hence it is called Mithya (unreal). Here unreal does not mean it does not exist, it merely means that it is depended on something else for its existence (not Self-existent). Thucca is a Sanskrit word for not-existent, like horse horn. This Universe is not Thucca (not non-existent) but Mithya (unreal or dependant-existent).

Vedic Teacher like Adi-sankara does say this Universe does not exist, they only said that it is Mithya and people are in Maya.

What is Maya?.

Maya is the inability to discriminate the real (Satya) from the unreal (Mithya). The inability to know what is Self-Existent (Brahmam) and what is depended-existent (Jagath) is Maya. Only through knowledge this error can be corrected. (More details in Maya).

  Now let us continue about the Vedic creation theory of beings.