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The flashback continues. Stephen is thinking about his mother, thinking about her room and objects he identifies with her, thinking about her memories, things she told him about her childhood.
Remember the context–Mulligan wants to use Stephen’s money, his wit, his ideas for his own benefit. This is mostly just selfishness, but also grandiosity, in that Mulligan wants to use Stephen for his project to “Hellenise” the island, to bring a new classical age to this struggling Ireland that’s at a critical point in its history. Several times through the day Stephen will hear about a new plan for Ireland, people will turn to him to talk about the future, or it’s artistic future. Where does this lead him?
Backwards–to thoughts about his mother–to the creation of a scene. In these powerful and vivid fragments, you’re seeing Stephen Dedalus begin to stretch his wings (so to speak) and show the promise of his creativity.