Can you recount the story from Chapter 34 about the doctor from Malegaon and his nephew's incurable illness?

Certainly. Chapter 34 tells the story of a degree-holding doctor in Malegaon whose young nephew was afflicted with a severe and painful bone-cyst known as Hadyavarn. The doctor, along with his skilled physician and surgeon friends, tried every possible remedy, including both native and foreign treatments, but nothing worked. The boy's suffering was great, and his family was deeply distressed. Having exhausted all medical options, the parents heard about the great saint Sai Baba of Shirdi. As described in Chapter 34, they decided to try this 'last resort' and traveled to see him. After they pleaded their case, the compassionate Sai Baba reassured them, gave them Udi from his hand, and instructed them to smear it on the wound, promising that the ailment would be removed and reinforcing the power of his divine intervention.