As myths run, a devotee (Vishweshwara Upadhyaya) was living here, regularly worshipping Lord Ganesha. One day, a Brahmin Vatu (young boy) appeared in his dream and said that he was hungry. Taking Upadhyaya with him, the Vatu disappeared near a stone in Nagachala.
Getting surprised by this unusual dream, he started off on the next morning in search of the spot, where the Brahmin boy disappeared in his dream. It was his usual path, which led to a pond, where he used to take his bath, bring sacred water for Abhishekam and collect flowers for worshipping Lord Ganesha. Soon he found the same granite stone, which he witnessed in his dream and was covered by wild flowers giving it a divine appearance.
Impressed by this sight, Upadhyaya hurriedly took his bath in the nearby pond and worshipped the deity and offered wild flowers and fruits. He continued to do so for a long time. One day, he saw a cow standing there pouring in milk from her udder on the deity. After this incidence, his devotion became stagnant and worshiped his God with more devotion. People generously donated land on which a straw hut was constructed to enable Upadhyaya to continue his worship. Thus started a new tradition of worship at Kumbhashi, which did not stop at any stage.