It is customary to worship Karunamay Dyo , who was seated at several locations throughout the former Nepal Mandal (An ancient confederation known as Nepal Mandal  existed in present-day central Nepal and was delineated by cultural, religious, and political boundaries. It includes the Kathmandu Valley and its environs.), under various names. Srishtikanta Lokeshwar is located in situated at Kavre’s Nala, Raktavalokiteshwar or Rato Machhindranath located in Bungmati in Lalitpur, Aryavlokiteshwar or Amoghpas Lokeshwar or Seto Machhindranath is located in Janbahal of Kathmandu, Adinath or Anandadi Lokeshwar of Kathmandu south side Chobhar. A tradition exists to worship Machhindranath of Dolakha as Bugdyo and Karunamay Dyo of Thimi as Padmapani Lokeshwar in addition to them.

According to tales, Karunamay came into being when Guruju (Shakya and Bajracharya) migrated to Dolakha and Thimi. In Nepal Samvat 685, Padmapani Lokeshwar is said to have been founded in Thimi. Padmapani Lokeshwar was presented to Thimi’s Karunamay because he was born in Padma Dyanasti . The Sithi Dyo, or Sithi deity, which is venerated in Sithi Nakha, is the form in which Padmapani Lokeshwar is known.

Every year, on Tachlathwa Khashti (Jeshta Shukla Khashti) in Nepal Samvat Tithi, the entire Newar community celebrates Sithi Nakha. On the day of Sithi Nakha, the traditional main dishes include meat cooked from pulses such Maas and Mugi. They clean water resources like Springs, Streams, Ponds, and wells on the Sithi Nakha holiday. There is a pilgrimage to Padmapani Lakeshwar in Thimi that same day in the evening. This Jatra, which stands out from the rest in appearance, is known locally as “Lokeshwor brought back from the dead.” On Pratipada day, it is customary to take a long bath before this.

The deity Padmapani Lokeshwar is revered for giving humans the bare necessities of existence, such as food and water. Rato Machhindranath, also known as Padmapani of Thimi, and Padmapani of Lalitpur Lokeshwar share the same form. Even so, Rato Machhindranath in Lalitpur and Thimi’s Padmapani both receive the same rites and customs.

It is said that Maharani Ganga installed Lalitpur Gurus (Shakya and Bajracharya) in Thimi, who pacified the then Bhaktapur epidemic. It is mentioned in the story of Bungdyo that King Narendradev of Bhaktapur, who brought Rato Machhindranath to Nepal Mandal, handed over his sons to Ratnadev in Lalitpur, Padmadev to Kathmandu and Baladev of Bhaktapur respectively and absorbed himself at the feet of Karunamay.