Could you provide a detailed account of the events leading up to and including the miracle of the lamps?

Certainly. Chapter 5 details that Sai Baba had a great fondness for lighting lamps and would even celebrate Diwali. His process involved tearing rags for wicks and then going daily with a tin pot to the local grocers and oil-merchants to beg for oil. This continued for some days until the grocers, tired of the daily free request, conspired to refuse him. On the day of their refusal, Baba returned to the mosque, placed the dry wicks in the lamps, and took his tin pot which had a minuscule amount of oil left. He poured water into it, drank the mixture as an offering, and then filled the lamps with plain water. He then lit the wicks, and to the grocers' amazement, the lamps burned with water as if it were oil, staying lit the entire night.