Does Hinduism state that the universe, stars and the sun were created first then the earth second with a continuous process of creation of stars and planets?
If we consider Universe as Space or Akasha and Earth as Prithvi then Taittiriya 2.1.1 says
तस्माद्वा एतस्मादात्मन आकाशः सम्भूतः । आकाशाद्वायुः । वायोरग्निः । अग्नेरापः । अद्भ्यः पृथिवी ।
From That, verily,—from This Self—is ākāśa (ether) born; from ākāśa, the air; from the air, fire; from fire, water; from water, earth;
You can clearly see first space is created and then only Earth is created.
Hope this answers the question.
As per the Vedic Literature, there are many exploits of Prajapati (the lord of beings) and his austerity from which Creation arose. Here are two such exploits which show the order of elemental and energy creation and the formation of celestial entities:
Vedic Exploit 1: Vedic Source (Rig Veda Bhaskala Śākhā Kausitaki Shankhyayana Brāhmaṇa Kanda 6.1-9 and Sukla Yajur Veda Śatapatha Brāhmaṇa Kanda 6 Brahmāṇa 3 (188.8.131.52-17))
In the beginning, Prajapati was alone. He desired “may I multiply”. Upon His practicing austerity, there emerged fumes called Tapo:dhuma, from which came water (This statement matches Vrita Suktam of Atharva Veda chap15). Water wished to flourish, upon austerity came foam, which a union of air and water. Foam wished to flourish and upon austerity came clay. In this way each desired to be more and so performed austerity in the following order: water > foam > clay > sand > pebbles > stone > metal ore > gold > Akṣarā (imperishable syllables/sounds). Since this bloomed into eight-folds, the 8-syllable Gāyatrī emerge. All these became the foundation for Bhumi (Earth) which spread out (prath), hence became Pṛthvī. However, in Kausitaki Brāhmaṇa only 5 emerge, which are Agni, Vayu, Adityas, Chandrama, and Uṣas. So what really emerged from Prajapati was a “desire” which is the root cause. From this desire, various phenomena emerged. Let’s go back to the event in Śatapatha Brāhmaṇa, all continued their austerity for a Sāṃvatsara, meaning one Solar cycle year, and upon its dawn (Uṣas/Auṣasī) arose a child, meaning the union of Sāṃvatsara and Uṣas gave birth to a child. Please note, it takes nine months (lunar months) from conception to child’s birth, but here it says one full year, why? If we compare later literatures, both Sri Krishna and Sri Ram were in their mother’s womb for 12 months. Coming back, who is this child? And what is the name of this child? Upon birth, this child cried (arodīt); Prajāpati held this child and said “my son you are Rudra” as he is the first roar/sound. This is why Rudra is the primordial roar. Hence, please note that Rudra didn’t come as the boy, this boy was called Rudra. This boy could not be contained and wished to encompass everything and so said, “with my name I have to become greater” and asked for another name/title. Prajāpati said “you are Śarva” and so the water became him, the boy grew in greatness and kept asking for more names. He was named Paśūpati, from him emerged flora/fauna. He was named Ugra (the fierce one), Vayu/Wind/Air became him. He was named Aśani, lightning became him and so did thunder. He was named Bhava, the rain became him and the Divinity of rain is Parjanya. He was named Mahādeva, the highest Divinity, and the moon (Soma) became him; hence He, Mahādeva with a moon on his head. He was named īśhana (the authority/the ruler), the Sun became him (hence the title Mīḍhuṣṭama/मीढुष्टम meaning Sun in Taittirīya Saṃhitā 4.5.5).
In Kausitaki Brāhmaṇa, the event is very similar, except the boy emerges with thousand eyes, feet, and weapons. The names given to the child are also the same, except for the order. The order starts with Bhava (Water), Śarva (Fire), Paśūpati (Animals), Ugra (Plants), Mahādeva (Sun), Rudra (Moon), īśhana (food), and Aśani (Rain/Thunder/Lightning). Please note the use of natural phenomena rather than using object names like gold, clay as done by Śatapatha Brāhmaṇa.
Vedic Exploit 2: Sukla Yajur Veda Prajāpati is the subtle body of consciousness and upon austerity/Yajñá all Devas arise from his exhaustion. Devas are the phenomenon of ṛta. The final aspect that remains in Prajāpati is furious essence, this anger is called Manyu. It is also explained in the Kṛṣṇa Yajur Veda that the final stage of the fire-altar becomes Rudra, also the remnant of Yajñá becomes whole and so restarts the Yajñá itself. Prajāpati’s tears of anguish and exhaustion which are called Tapodhuma cover the wrath of Manyu. This Manyu is the hundred-headed Rudra with a thousand eyes and thousands of weapons. The remaining three Vedas speak of this multifaceted form of Rudra as Viṣvarūpam, meaning the cosmic form or the all-encompassing omni-form RV 2.33.10/TS 4.5.4/TA 10.23.1. These tears of anguish cover all bhuvanas (lokas) in countless numbers, and they are all called Rudras. Since this form originated from anguish/cry (ruditāt), He is called Rudra. So, the word Rudra has many meanings based on the process involved, this is why Rudra is the Divinity of many contradictions and so becomes a natural epithet to all Vedic Divinities. This incomprehensible fierce form frightened all the Devas, so they asked Prajāpati to pacify him. They gathered calming oblations/offerings called Śāntadevatyam; this calming oblation to Rudra is called Śāntarudriya. These offerings include Sesamum seeds, Gavedhuka and Arka offered over ceremonial stones around the fire-altar called Pariśrit. Since it is to appease the hundred-headed Rudra, it is called Śataśirsarudra-śamaniyam (Śata = hundred, śirsa = heads)
How can one offer oblations to the Lord who encompasses all? What can one offer to Him that is not His? These Svāhākāra (oblations) in the form of Gaveduka were offered in the Northern region of the Agnihotram (fire-altar) because this is the region of Rudra (hence the title dakṣiṇin marutāṃ) RV5.60, and so a Gaveduka plant grew at that palace, and Prajāpati said: “we satisficed him with his own share with his own essence”. Similarly, leaves of Arka were offered and an Arka plant grew at that place and again Prajāpati said “we satisfice him with his own share with his own essence”.
Svāhākāras offered from the height of the knees are received by Rudras encompassing Earth and below realms; similarly, oblations given from the navel region are received by all Rudras of the aerial region called antariksha; then oblations given from the mouth region are received by those from the upper celestial regions. Finally, oblation is surrendered to the hundred-headed manifestation of Rudra; this form is titled Kṣatra, meaning the chief/head/owner. From the tears of Kṣatra came Viś, and Viś became Creation itself and its beings, they became people or commoners. These Viś gave the first oblations/anuvākam of Śataśirsarudra to Ekadevataya (the One Divinity), who is Kṣatra. This very concept gave way to Eka-Vrātya or Eko-He-Rudra, meaning “there is none that is not Rudra”. And Viś became the root word for Viśvam, and if we go to Kṛṣṇa Yajur Veda Taittirīya Saṃhitā 4.5.5 says “नमो गिरिशाय च शिपिविष्टाय च” meaning salutations to the one who resides on the mountains and who becomes Viśvam (ŚipiViṣṭa). Please note that ŚipiViṣṭa is a title given to Viśnu as well, as Viśnu is the personification of Viśvam. Hence Prajāpati says “we satisficed him with his own share with his own essence” and this conclusion corresponds with Kṛṣṇa Yajur Veda Taittirīya Saṃhitā1.8.6 which in return landed in both Svetasvatara Upaniṣhad and Chandogya Upaniṣhad (two among the 18 primary Upaniṣhad).
There is (हि) The One (एको ) Rudrā (रुद्रो) and none (न) other than He, none can make Him second (द्विती) in being (याय), that is in existence (तस्थु:र्य) among worlds( इमां:ल्लोका), He is the authority (ईशते) by His own authority (ईशनीभिः)| In all worlds/celestial dimensions (भुवनानि), is His projection and under His guardians (संसृज् + ज्य + गोपाः) in entirety (विश्वा), He is established (तिष्ठति) in all beings (हे जनाः) as the indweller (प्रत्यङ्); and all beings (भूत्वा), at the time of final dissolution (अन्त:काले), become/withdraw into Him (सञ्चुकोच)