What does the incident with the oil lamps reveal about Sai Baba's character and his mercy?

The incident of lighting lamps with water reveals multiple facets of Sai Baba's character. Firstly, it demonstrates his divine power and his independence from worldly materials. When denied oil, he did not argue but simply used water, showing that his actions were not bound by conventional means. More importantly, as Chapter 0 highlights, his reaction after the miracle showed his profound mercy. The villagers were terrified after witnessing his power, realizing they had insulted and harassed him. However, Baba was described as "completely merciful," with a motto to do good even to those who had wronged him. This event established him not just as powerful, but as a loving and forgiving father-like figure to the village.