Could you walk me through the specific sequence of events concerning Baba's cough and Laxmichand's 'evil eye' thought?

Certainly. The incident, as described in Chapter 28, unfolded in two parts. First, during the Chavadi procession one night, Laxmichand observed that Sai Baba had developed a cough. A thought spontaneously arose in Laxmichand's mind that the cough might be the result of someone's 'evil eye'. This was a private, internal thought. The next morning, when Laxmichand went to the masjid, he witnessed the second part of the event. Baba, speaking to Madhavrao Deshpande, said, "Yesterday I had much coughing; is this the effect of an evil eye?" Hearing Baba vocalize his exact private thought left Laxmichand utterly astonished, reinforcing his belief that Baba resides in everyone's heart.