While both the concept of appealing for help by calling the name of the bodhisattva and the idea that Kwan-yin takes on many forms remained important elements in Kwan-yin devotion and religious practices, a great many other stories, extra-canonical stories, especially stories of embodiments of Kwan-yin, attracted popular attention in China. The most common of these stories to come down to the present day is the story of Princess Miao-shan. Taught to them by their mothers and grandmothers, it has had much influence on how Kwan-yin is perceived and understood by Chinese Buddhists.

Miao-shan (meaning “wonderfully good”) was the third daughter of King Miao-chuang. She was naturally attracted to Buddhism, keeping a vegetarian diet from a young age, reading Buddhist scriptures during the day, and meditating at night. Having no sons, the King hoped to choose an heir from among his sons-in-law. When Miao-shan became old enough to marry, unlike her two older sisters who had married men chosen by their father, she refused to be married to anyone. angered her father so much that he found a variety of ways in which to punish her. For a while, for example, she was made to do hard work in the garden. When those tasks were completed, she was allowed to go to the White Sparrow nunnery, where she underwent further trials designed to discourage her from becoming a nun. But she persevered. So the King burned down the temple, killing the five hundred nuns who lived there, and he had Miao-shan executed for disobedience.

While her body was being protected by a mountain spirit, Miao-shan’s spirit traveled to a purgatory, where she was able to save many beings by preaching the Dharma to them. Returning to earth, she went to Fragrant Mountain, meditated for nine years, and became fully awakened.

By this time her father the King had become very ill with a mysterious incurable disease. Disguised as a wandering monk, Miao-shan went to her father and told him that there was only one thing that could save him – a medicine that was made from the eyes and hands of someone who had never felt anger. And she even told him where such a person could be found. There she secretly offered her own eyes and hands to be turned into medicine, which was taken by the King, curing him of his disease.

The King then went to Fragrant Mountain to give thanks to the one who had saved him. There he immediately recognized the ascetic without eyes or hands as his own daughter. Overwhelmed with remorse, the King and his entire family converted to Buddhism. And Miao-shan was transformed into her real form – Kwan-yin with a thousand arms and eyes. Soon after this, Miao-shan died and her remains were placed in a pagoda.