The Hindu School of Philosophy named Samkhya/Sankhya gives you the appropriate Worldview in which your questions are answered - https://en.wikipedia.org/wiki/Samkhya

There is an "Objective Reality" (mutable, evolves into many forms and includes both material/non-material concepts) and a "Witness-Consciousness" (immutable and attributeless). The latter is embodied in one form of the former which we call Sentient Living Beings. But we forget the distinction between the two and experience reality through its own subjective evolutes within the embodied being i.e. Sensory Mind, Intelligence and Ego. Various techniques/practices have been prescribed in Samkhya/Yoga/etc. to break out of this illusion and realize that one is simply pure awareness/consciousness beyond any experience. This is what is called as Kaivalya/Moksa/Nirvana i.e. a state of mind in which there is total freedom from everything to do with objective reality.

See also the paper A landscape of consciousness: Toward a taxonomy of explanations and implications and previous discussion on it here - https://news.ycombinator.com/item?id=40844824

I have been reading the yoga sutras recently and it strikes me how applicable it is. The weird stuff about attaining magical powers is... cool, but samyama and the nature of the reflective consciousness have a lot of explanatory power imo.