Baba was very fond of lighting lamps in the Masjid. In the early days, the oil for the lamps was offered free by the shop-keepers as a token of love, and Baba would go personally, tumbler in hand, and receive the oil from the merchants. He would then pour this oil into earthern lamps, using pieces of old cloth as wick. On the festival day of Deepavali, there would be extra lamps to celebrate the occasion. After some time, the grocers became tired of giving oil free to Baba and demanded payment. They obviously did not appreciate who Baba really was. Baba, naturally, was not going to pay, and He silently returned to the Masjid. In full view of the grocers, Baba first shook off the traces of oil in His tumbler, filled it with water, yes water, and then poured this water into the lamps, ready with wicks. Thereafter He lit the lamps, and wonder of wonders, the lamps all started burning; not only that, they kept burning all night. The shop-keepers realised their mistake, fell at Baba's feet and sought pardon. They at last understood that Baba was Divine.

Baba taught lessons in the most unusual manner. Lakshmibai Shinde was an ardent devotee of Baba. Once, she made a nice dish for offering to Him. After that she left the kitchen for a short while, to attend to some work. Meanwhile a dog gained entry into the kitchen and helped itself to the tasty item. Seeing this, Lakshmibai angrily dealt a few blows to the dog with a stick. Cursing the dog, the lady made the dish afresh, took it to Baba and offered it to Him. Baba refused to accept, though He was known to like this dish very much. Puzzled, Lakshmibai asked Baba why He refused, and He replied that it was because she had chased Him away when He came to her house. Lakshmibai was astonished because Baba had not come to her house, and who would dream of chasing Him away? So she protested, whereupon Baba said: "I don't have to come in this particular form. I can come in any form. I came as a dog and what did you do? Did you not rain blows on Me?" Swami says that in this way, Shirdi Baba taught that He is Omnipresent, and that all forms are His.

To Das Ganu, a devotee of Baba, belongs the credit of popularising the name of Baba among the masses. In 1897, Baba started the celebration of the Rama Navami festival in Shirdi. In 1912, it was decided to include a Harikatha or a musical rendering of the story of the Lord, as a part of the annual celebration. In 1914, Baba entrusted the job to Das Ganu, who took this job most seriously. In fact, he went to various places singing the glory of Baba. Once, Das Ganu was grappling with the intricacies of the scriptures, and unable to find answers to his doubts, he sought Baba's guidance. Baba told him, "Go to Kaka Dikshit's house in Vile Parle (a suburb of Bombay). Kaka's maidservant will clear all your doubts". On the face of it, this is an extra-ordinary directive; yet, such was Das Ganu's faith in Baba that he did exactly as commanded. In Kaka Dikshit's house, Das Ganu saw that the servant, a young girl, was busy in her work but happily singing as if she did not have a care in the world. Das Ganu learnt then and there that contentment is the most precious gift one can ever get.