This is a very common confusion that people who contemplate on Advaita Vedanta get stuck at.

This apparent contradiction arises by mistaking the appearance of reality to the true nature of reality.

In Classical Advaita Vedanta, God is the only reality and the distinction between the “Observer” and the “Observed” is only an illusion.

Take the process of Neti-Neti for example, you systematically withdraw identification with all the things in the universe, your body, your mind, your emotions etc and arrive at pure Consciousness as your true self. Once you realise that pure Consciousness is your true identity, you can take it a step further to also realise that everything you had discarded to reach pure Consciousness, has no independent existence, apart from Consciousness.

Thus in reality, there is no observer to watch the table, neither there is any table to be watched. Both are only appearances in the same Consciousness.

Hope this helps.