The legend which is current about the appearing or origin of Lord Babulnath Mahadev is very interesting and sensational. The place to-day known as Malbar Hill in proper Mumbai had an abundant pasture land in South-West area about two centuries back. Mr.Pandurang, a rich goldsmith was the owner of this large land. The cattles of Mr.Pandurang used to graze in the pasture. A cowherd named Babul was looking after the cattle. There was abundant green grass in the pasture. The cattle used to wander unrestrained in happiness. Babul had not to worry much about the cattle. He used to play his flute and cattle used to roam in the pasture happily. The cows had fresh grass to graze so they were very healthy and were giving plenty of milk. Mr.Pandurang the master had always surplus milk.
On an evening, a healthy cow named Kapila did not give a single drop of milk to her master. The master called upon Babul and asked the reason for it. The Master was astonished by the reply given by Babul, the cowherd. Babul said with respect that it was not a first incident that the cow has not given the milk. Since long, the cow has stopped to give milk at evening. Innocently, the cowherd added that the cow regularly goes at evening to a particular place and pour out the whole milk from her teats, therefore one could not expect milk from her. However, the master could not believe the cowheard’s explanations. Therefore on the next day he went with Babul and he was surprised to observe the cow’s gesture. As soon as the healthy cow, Kapila reached at the fixed place, she jumped and stood up. She allowed her milk from her teats to pour at the place spontaneously in the form of anointing (Abhishek). The scene encouraged curiosity of the master. The place at which the cow was regularly anointing/pouring out milk, was got dug out by the master. The Master was amazed and was cheerful to find that a Swayambhu i.e. self-existent beautiful Shivling carved in a black stone was under the place ! Appeared before about 200 years, this self existent Shivling is our Lord Shree Babulnath Bhagwan. The principal deity of the temple.