When Baba mentioned his cough might be from an 'evil eye,' who was he speaking to, and why was it significant for Laxmichand?

According to Chapter 28, Sai Baba directed his words about the 'evil eye' to Madhavrao. Baba said to him, "Yesterday I had much coughing; is this the effect of an evil eye?" While Madhavrao was the person being addressed, the true recipient of the message was Laxmichand, who was also present. The significance was that this was the exact private thought Laxmichand had the previous night. Hearing Baba voice his internal musings aloud to someone else was a profound wonder for Laxmichand, making him realize that Baba dwells in everyone's heart and knows all.