OH, they are aware...

My abusive narcissist blamed his mother, hated his mother, and inflicted damage upon his mother - his father was the abuser and narcissist and he learned how to lie, manipulate, and damage other human beings by watching the fear (which was equated with "respect") that was instilled in his mother.

Yes, they are definitely aware of what they are doing.  That is precisely why you will never, ever see a narcissist host a large party with more than a few people who are mutual "friends" of the narcissist.  It is very, very difficult to keep track of one's stories/lies in a group where so many people might get together and compare notes.

And, most abuse perpetrated by narcissists is done behind closed doors, whethere it's a spouse, significant other, family member, or "friend."  In that manner, if a victim ever has the courage to face the narcissist with the damage that they've inflicted, the narcissist will remain steadfastly calm, rational, and reasonable while the victim will appear to have lost their minds.

Good luck