Baba said, his nights were not intended for sleep. On the other hand, he used his divine eye of supervision.
He kept watch over all his bhaktas in all their places. He averted danger from them. Look at this vast unimaginable task of one person trying to save hundreds in hundred different places. The task is simply unimaginable. No human being could ever succeed in it.
It is the divine Baba that could do it and that did it. His divine power enabled him to do it. His divine kindness made him forego sleep and all comforts for that purpose.
The sacrifice of physiological well-being by giving up sleep night after night, was very serious, but Baba willingly consented to do it. Baba’s body was human, though his soul was divine; Baba had to undergo all the physiological evils of protracted loss of sleep and loss of comforts.
‘When one gets laya in God, all powers, all knowledge, all wisdom, all perfection, that are termed divine, shine forth from such a person‘. Baba was perfect in his concentration on God.
Therefore in the above quoted instances, as in the other innumerable instances to be found in the Gospel of Sai Baba (i.e. BCS) or other books on Baba, the powers exercised by Baba were the result of his laya in God, that is, they were really divine powers.
In many cases, the object of Baba was that a devotee should not merely get relief. The devotee should also develop full belief in him (Baba) as the Guru-God. This belief allows the devotee to attach himself firmly to Sai Baba and develop his life thereafter with his help. This is the great object with which siddhis were utilised by Baba.
Temporal help was given by means of these chamatkars, but there was always a string attached to the temporal help. The man who got temporal benefit had at the same time a push in the spiritual direction.
Patanjali Yoga Sutras in Chapter III, especially those about Pratibha and Sarva Bhava Athreshta Trithva and Sarve Jnathruthva. Patanjali has said therein that by concentrating on the Purusha and developing Suddhasatva one attains pratibha (knowledge of everything), and one can do everything, i.e., achieve omnipotence and omniscience.
Use of siddhis may be good or bad and both are referred to not only in Bhagavata, Skanda XI, but also in Baba’s advice and actions. Baba gave a warning to a devotee just beginning to develop powers. This is the stage when curiosity, ambition, and other worldly motives arise. These desires come from the appearance of siddhis within the grasp of the sadhaka or devotee.
Regarding Baba’s action, anyone would note that Baba made ample use of innumerable siddhi powers. Therefore, there is nothing wrong in using siddhi powers. All great ones including Sri Krishna have used their divine powers or siddhis
"I draw to Me, My man from far off or even across the seven Seas to Shirdi, like a sparrow with a string fastened to its feet"-Shirdi Sai Baba, Indian Spiritual Guru-God 