This festival is explained in detail in Sri Caitanya-caritamrita (Antya-lila, Chapter 6). Srila Raghunatha dasa Gosvami was previously a householder and wanted to join the personal association and service of Lord Caitanya Mahaprabhu at Jagannatha Puri. However, his father prevented Raghunatha dasa from doing so. After several failed attempts, Raghunatha dasa heard that Lord Nityananda Prabhu had arrived at Panihati. In order to receive the Lord’s causeless mercy, Raghunatha dasa went to take His darsana. When Lord Nityananda saw Raghunatha dasa, He ordered him to prepare and serve all of His associates with chida-dahi, flat rice mixed with yoghurt. In order to please the Lord, Raghunatha dasa immediately carried out His order by preparing and distributing large quantities of chida-dahi to the Vaishnavas as well as hundreds of others who had arrived on the spot upon hearing that a festival was on at Panihati. Finally, Lord Nityananda blessed, and ordered His associates to bless, Raghunatha dasa, that he will be successful in attaining the personal association and service of Lord Caitanya Mahaprabhu.
Panihati is located near Kolkata. Many devotees from Mayapur and Kolkata assemble and jointly conduct kirtanas and massive prasada distribution to the thousands of pilgrims who arrive for the festival.