Srimad-Bhagavatam: Canto 10 - Chapter 1 - Verse 46


श्रीभगवानुवाचयदात्थ भगवंस्त्वं न: करवाम प्रियं तव ।भवतो यद् व्यवसितं तन्मे साध्वनुमोदितम् ॥ ४६ ॥


śrī-bhagavān uvācayad āttha bhagavaṁs tvaṁ naḥkaravāma priyaṁ tavabhavato yad vyavasitaṁtan me sādhv anumoditam


The Supreme Lord said: My dear lord, for your pleasure We must certainly do what you have requested of Us. I fully agree with your conclusion.


We should not think it strange that the Supreme Lord, Kṛṣṇa, here addresses Lord Śiva as bhagavan, “lord.” All living beings are part and parcel of the Lord, qualitatively one with Him, and Lord Śiva is an especially powerful, pure entity who possesses many of the Supreme Lord’s qualities. Just as a father is happy to share his riches with a beloved son, so the Supreme Lord happily invests pure living beings with some of His potency and opulence. And just as a father proudly and happily observes the good qualities of his children, the Lord is most happy to glorify the pure living beings who are powerful in Kṛṣṇa consciousness. Thus the Supreme Lord is pleased to glorify Lord Śiva by addressing him as bhagavān.