How did Sai Baba demonstrate his ability to know people's inner thoughts and physical feelings in the story of Laxmichand?

Sai Baba demonstrated his profound inner knowledge, or omniscience, to Laxmichand on multiple occasions, as detailed in Chapter 28. First, while Laxmichand was suffering from hunger and back pain and privately craving khaja, Baba openly spoke words that mirrored his exact condition: "Hunger has come, that's good. There should be medicine for back pain. Now the wind of khaja has blown." Later, when Laxmichand saw Baba coughing and privately thought it might be due to an 'evil eye,' Baba voiced this exact thought the next morning, asking Madhavrao if his cough was the effect of an evil eye. These events showed Laxmichand that Baba dwelled in everyone's heart and knew their innermost thoughts and feelings.