Question: I seem to remember that somewhere Sri Jiva Prabhu has written in the Sandarbhas that Sri Krishna does not directly take part in the affairs of the jiva, rather it is done through his expansion as Paramatma. Is this true, and if so could you please give me a reference for this?
If this is actually siddhanta, then when we pray to Krishna, is it Krishna Himself who hears the prayers of his devotee or is it Paramatma?
Answer: There are two types of jivas, devotees and non-devotees. Non-devotees are under the jurisdiction of Paramatama because Paramatma is in charge of tatastha shakti. When one takes to bhakti then Lord Krishna ( or whoever is the ista deva) personally takes the role of Paramatama, because bhakti is antaranga sakti and Krishna is in charge of it. That is why it is said that a devotee is free of karma. Karma is under the jurisdiction of Paramatma. Even when a devotee is seemingly suffering or enjoying like others it is not due to karma but arrangement of Krishna to make the devote advance in bhakti. But he makes it look like as if it is karma-effect, not to make look bhakti exotic so that unqualified people do not take to bhakti. This should answer your question about the prayer also. The reference is in the beginning part of Paramatma Sandarbha.
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Krishna taught by his personal example how we can live peacefully without stress, without anxiety, and without hatred.