Did Sai Baba proclaim 'Anal Haq' when he first met Mhalasapati in the temple?

No, the source material explicitly states the opposite. Chapter 0 clarifies that the holy man never said 'Anal Haq,' which means 'I am God.' Instead, he demonstrated humility, calling himself a 'banda' (servant of God) and frequently uttering 'Yaade Haq,' meaning 'I remember/meditate on God.' The text describes his first meeting with Mhalasapati as the moment he received his famous name; Mhalasapati greeted him with 'Aavo Sai Baba' (Come, Sai Baba). There is no mention of him making grand declarations of divinity; in fact, his humility is a key characteristic described in Chapter 0.