What does the story of Laxmichand and the 'evil eye' in Chapter 28 reveal about Sai Baba's nature?

The incident concerning the 'evil eye' in Chapter 28 reveals Sai Baba's profound quality of being an 'antaryami,' or the indweller of all hearts. When Laxmichand saw Baba coughing, he had a fleeting, private thought that it might be caused by an evil eye. The next day, Baba vocalized this exact speculation, asking if an evil eye was the cause of his cough. This event was not a coincidence but a direct demonstration for Laxmichand's benefit. It showed that no thought is hidden from Baba and that he is intimately aware of the minds of his devotees. This revelation caused Laxmichand to wonder, 'How did Baba know this? Does He dwell in everyone's heart?', ultimately deepening his faith immensely.