Krishna's first answer is direct. When a person gives up all desires that live in the mind and finds contentment in the Self, by the Self — that person is called Sthitaprajna.
This does not mean such a person stops acting or wanting anything at all. The key word is manogatan — desires dwelling in the mind. The Sthitaprajna's contentment does not depend on external objects. Like a well that is full from its own underground spring, this person does not need water poured in from outside.
A small child completely absorbed in play — not thinking about snacks, not worried about tomorrow, simply present — carries a faint echo of this quality. Total absorption, total contentment, needing nothing from outside to feel whole.