Pretty close to the truth as I see it. God is not literally in us, but we are in His image. Hard to say if that is panentheism.
To say we are created in the image of God is a true statement. But it is a true statement from a dualistic perspective. That is to speak of ourselves as separate from other things we perceive. Dualism is a perception of reality based upon subject/object relationships.
To say that God is within us, acknowledges the immanence of the Divine, or Spirit, or God (different words, same referent), within creation itself. It speaks to the immanence, or Presence, of God. God is not separate from the world, but is wholly Present within the world, down to every molecule and atom of it.
You are not the first person I heard who recognizes God is present within creation, but when it comes to seeing the Divine, they separate it outside of themselves, and themselves outside of creation itself as well. Again, that reflects a dualistic perception of subject/object division. They can see God in the world, but not in themselves. And that is a perceptual phenomena. largely reinforced by the language we use which is based upon dualist perceptions.
One trick to get the mind to see beyond that is a simple thought experiment. Do you believe God is Infinite, or finite? To say God is finite, makes God a creature, or a specific form of some sort or another, like a tree, or a house, or a chair, or a cat, etc. But that God cannot then be said to be Infinite.
If God is Infinite, that means there are no edges or boundaries around God. God is limitless, everywhere at all times, and no "where" in particular, like being down at the store or at the park instead of in the lake.
If God is not inside of us, then that creates holes inside the Divine, and God becomes like a block of Swiss Cheese. There is somewhere, that God's being, is not. That makes God finite in nature.
That creates a contradiction to the very theistic definition of God as Infinite, or the big three, Omnipotent, Omniscient, and Omnipresent. If God is outside of us, he is not Omnipresent, and then the other two Omni qualities soon fall as well.
Why I believe Jesus spoke through a panentheistic, or nondualist perception of the Divine, is because his language speaks paradoxically of God "in heaven", while at the same time fully immanent here on earth and in all creation. "Thy will be done on heaven as it is on earth". He spoke of God as in heaven, and then said that those who abide in Spirit, or following God's Will, he will be in them and they in him. Jn. 15:4
Plus there are many references within scripture that speaks of Spirit within us. God in us. Christ in us, etc. There really is no difference between being in the image of God, and God being in us. We are in the imagine of God, because the Divine is fully immanent within us. That we don't see that, or realize the, is a perceptual blindness only.
Make sense, at least logically? Realizing that spiritually however, becomes another matter.
