Q: When I keep the mind on this feeling of ‘I am', must I be relaxed and quiet? Should I see what is happening, without interfering, or should I be observing, scrutinizing, comparing, etc.?
AS: It is enough if you can simply relax in this 'I am’. Whatever happens in this 'I am’, this consciousness, just be indifferent to it.
You are the consciousness itself, not the thoughts and ideas that appear in it. Many things both good and bad are going on in this world. We don't bother about most of them because we think, ‘These things are happening to somebody else and not to me.’
In the same way, be the consciousness 'I am' and be indifferent to the various things that come and go in your mind. If you identify with thoughts judge them, compare them, worry about them, try to suppress them, or get involved with them in any way, they will cause you trouble. Instead, be utterly indifferent to them.
If you don't pay them any attention, they can never adversely affect you.
The personal 'I' makes judgments about good and bad, right and wrong. It is perpetually enmeshed in dualities. The jivanmukta, who is only ever aware of himself as ‘l am’ has transcended all duality. He sees no right and wrong. He remains as the witness of all happenings without judging them and without -identifying with them in any way.

' Living by the Words of Bhagavan '