I'm trying to understand how Baba knew what people were thinking. Is there an example of this in the texts?

A compelling example of Sai Baba's ability to know a person's innermost thoughts is found in the story of Boss Dharamsee in Chapter 35. Dharamsee was silently troubled because he disliked the grapes with seeds that Baba was offering. He even had a thought challenging Baba's sainthood, wondering why Baba would force grapes upon him that he disliked. In response to this unspoken thought, Baba not only gave him more grapes but then commanded him to eat them. As Chapter 35 recounts, the moment Dharamsee obeyed, he discovered the grapes were seedless. Dharamsee himself reflected, "Knowing the intent of my mind...Whatever Sai gives me, they turn out to be seedless and beneficial."