The granddaughter is spontaneity. The demon is bad thoughts. The child Krishna is Divinity. The breastmilk of the demon is desire. When greed destroys the intellect, bad thoughts rule.
Spontaneity can aid, but without the intellect, danger is at hand in the form of unchecked desire.
Divinity alone can take in desire and be unaffected. Without desire in action, demons perish. But there are some people who instead say, no it is all just demonic holograms. While others say no, it really happened, and it is history. Bon tells you these things in love.