And whom, would you say, did he come to ask?

你道, "would you guess" — the storyteller turning to the room and pausing for effect before the answer. 誰 is shuí.

That fine Great Sage dropped down his cloud, went to the foot of the prefectural wall, shook himself and turned into a wandering Quanzhen adept of the cloud-and-water sort: on his left arm hung a water-and-fire basket, in his hand he beat a fisher-drum, and from his mouth he sang a Daoqing ballad. Nearing the gate, he came up to the two Daoists, bowed to their faces, and said: "Masters — a poor Daoist salutes you."

The disguise is chosen with care: in a kingdom that worships the Dao, the safest way to walk up to the enemy is dressed as one of them. A 雲水全真 is a "cloud-and-water" Quanzhen mendicant, a wandering Daoist of the order founded in the twelfth century, and Wukong takes the whole kit — the 水火籃兒, a basket for the tools of fire and water; the 漁鼓, a fish-drum, a length of bamboo headed with skin and slapped to keep time; and the 道情詞, the ballads such men sang for alms. It is busking as cover. 著 is the durative zhe at all four of 掛著, 敲著, 唱著 and 迎著, marking each action as ongoing; 兒 is the light er; 長 in 道長 is zhǎng, an elder or master; 當 is dāng, to the face; 一 is yí before the falling tones of 變 and 個.

The Daoists returned his courtesy: "Where does the gentleman come from?"

Both readings of 那 in one line. 那道士 points — nà, "those Daoists"; 那裡來的 asks — nǎ, "from where?" 還 in 還禮 is huán, to return a courtesy, giving the bow back.

Pilgrim said: "This disciple roams to the corners of the sea and drifts to the sky's edge.

子 in 弟子 is full zǐ, a disciple, not the light ending.

Today I have come to this place, hoping to beg from charitable households.

朝 is zhāo, morning — so 今朝 is "this morning," today. 處 is chù.

May I ask you two masters: in this city, on which street is the Dao well-loved,

The question is framed as a beggar's and is really reconnaissance. 好 here is hào, to be fond of something — which street loves the Dao — not the hǎo that means good. Keep both readings in mind: the chapter uses them within a few lines of each other, and once uses 好道 for something different again. 長 is zhǎng; 中 is zhōng; 那條街 asks, so 那 is nǎ, "which."

and in which lane are the worthy cherished,

好 is hào again, matching the 愛 of "cherish the worthy" in the answering half. 那個巷 asks: 那 is nǎ.

so that a poor Daoist may go and beg himself a little food?"

And now the third 好 in three lines, this one plain hǎo, "so that" — so that a poor Daoist may eat. 化齋 is to beg for food.