Can you recount the story of how Maharaj lit lamps with water when he was denied oil by the villagers?

Certainly. According to Chapter 0, Maharaj had a fondness for lighting many lamps in the Masjid and temples. For this, he would get oil from the local grocers. One day, however, the worldly men refused him, claiming they had no oil. Unperturbed, Maharaj simply filled the lamps with water instead. While the onlookers were convinced of his madness, they were amazed when the lamps lit with a match and burned brightly all through the night. This miracle caused the people to surrender to him and apologize for their prior insults.