During this period, Baba expressed the need for a new watchdog. Madhav Rao (a Meherabad resident) brought his uncle's dog to Meherabad. But after a few days, Baba ordered Anna 104 to return it to its owner in Ahmednagar. The mandali were in favor of keeping the dog, but they remained quiet, respecting Baba's wish. When Anna took the dog back, the reason behind Baba's sending it away was made known. Madhav's aunt told Anna that she missed the dog and hadn't been in favor of it being taken to Meherabad in the first place. Her husband had even written Madhav and Baba about it, but Madhav had felt embarrassed and did not show the letters to Baba.
Age commented, "A God-conscious Master possesses a Universal mind. What difference did it make whether Baba read the letters or not? No matter ever remained hidden from him. He knew every moment what every person in the world was doing and thinking, and also what each one would do or think after thousands of years. Meher Baba's every act was an expression of infinite kindness."
On Tuesday, 10 August 1926, the Parsi New Year was celebrated. All the mandali awakened early and bathed at five o'clock. The women mandali gave Baba a ceremonial bath. Afterwards, Baba applied attar (scented oil) to each of the men, and they had milk tea and grapes for breakfast. Cricket matches were held throughout the day.
Two days later, Arjun, the director of the school, fell ill and was unable to work. So for some days, Baba assumed Arjun's duties and looked after the children's meals, bathed them, and did their laundry.
Zoroaster's birthday was celebrated on 15 August 1926. Baba sometimes explained about the past Avatars to the mandali. On the 16th, he revealed about Prophet Muhammad:
Infidels knocked out the teeth of Prophet Muhammad and he did not let out even a single sigh! As Masters, our ways are quite opposite to the ways of the world. We outwardly harass those who love us, and we do nothing to those who despise us. We nourish our enemies and kill our friends! Muhammad was one of us and his teeth were broken by stones. Look at what happened to Jesus — he was crucified. We crush the eyeballs of our lovers underneath our heels and ignore our foes. We mercilessly tyrannize our lovers and even murder them.