Posted by AKG:
2 = {0,1} = {{},{0}} = {{},{{}}}
21 is the set of functions from 1 to 2. A function from 1 to 2 is a set of ordered pairs such that the first element in a pair is an element of 1 and the second is an element of 2, and there are no two distinct pairs that have the same first co-ordinate (this last bit just says that functions are not one-to-many).
There are two functions from 1 to 2. Recall 1 = {0} = {{}}, and 2 is what it says above. One function maps 0 to 0, and the other maps it to 1. So
21 = {{(0,0)}, {(0,1)}}
The ordered pair (x,y) is {{x}, {x,y}}, so continuing:
= {{{{0}, {0,0}}}, {{{0}, {0,1}}}}
= {{{{{}},{{}}}},{{{{}},{{},{{}}}}}}
= {{{{{}}}},{{{{}},{{},{{}}}}}}