Who Is God?
Dao is analogous to God, but Dao is not a being. Rather, Dao is the source of all and the ultimate reality, and Dao is the cause of all change in life. Dao permeates the universe and is the principle behind all that is. Dao can only be experienced through mystical ecstasy. Daoists seek transformation of their self and body into a cosmic, Dao-focused entity. This is achieved through ritual and meditation.
I'm not about to say that there haven't been a lot of people over the ages that have thought the same thing, but I don't. Instead, I believe that this way of looking at the term makes a few pretty substantive mistakes---ones that lead people up a spiritual blind alley.
The first thing to remember is that originally (i.e. at the time of Zhuangzi) "Dao" simply meant "way". And all sorts of jobs had a "dao" to do them. (This means that all those self-help books that purport to teach us the "dao" of something or other are actually not that far off.) For example, there is a "way" or "dao" to being a good carpenter. I'm not talking about following the building code, however, even though that is part of the picture. The closest English word I can think of is "knack" or "gift". A carpenter who has the Dao of carpentry is one that seems to be able to effortlessly do the job in a way that is far superior to everyone else. Indeed, Zhuangzi several times makes specific mention to tradesmen and their ability to perform quite mundane tasks.
What I would suggest is that Daoist is someone who has not only looked at a specific example of someone who has managed to develop a "knack" at a special vocation, but has spent time thinking about what it means to develop a "knack" as a "knack" itself. The point is not to become a master carpenter, but rather to become someone who has spent time trying to understand the concept of "Mastery" in and of itself. In effect, a Daoist is someone who seeks to find the Dao of Daos, or the "knack" of "knacks".
It can be easy to start to see this in the same terms as Western religion.
For example, anyone who really deeply looks at a subject can develop what appear to be magical abilities. The example that just about everyone acknowledges is that of the martial arts master who can do seemingly amazing feats. But there are others. One story I came across was that of two friends who met for dinner and totally surprised each other with a seemingly magical act. The first one surprised his visitor by providing him with a sumptous meal when he showed up. The secret was not clarivoyance, however, just that he happened to be on a hill and see him coming from a long way off, which gave him time to tell his cook to prepare a meal. The other feat was that guest had brough some fruit without any pits. This was not fairy food, however, for the visitor had simply pulled the part of the flower that developed into seeds out after they had been pollinated.
Another fascinating example comes from Arthur Koestler's The Lotus and the Robot, which describes his travels across the orient. He decided that he would investigate the "magical" abilities of fakirs while in India. He went to one place where he was told a very magical person lived who was able to "walk" on water. It turned out that in this part of India no one had ever seen anyone swim, and this fakir had simply learned how to float on water instead of sinking. (This sort of radically diminished expectations might explain why magical abilities seem to decline with the spread of rapid communications and literacy.)
With the above points in mind, it should be clear that people who put a lot of effort into observing the world around them, and how to work best with it, will begin to be able to do things that may seem like miracles. But being able to do the unexpected, as the example with the swimming fakir, is far from evidence of divinity.
Having said the above, there are some very mysterious elements to mastery. Where does the spontaneous ability to see, say or do the exactly right thing at the right time come from? I would suggest that there is evidence that part of this ability comes from understanding how our minds work and what it means to be a human being. (Especially if one seeks to be more than simply a gifted "savant" in particular field.) This is where the meditation practice of Daoists becomes important. But as I see it, this is about personal self-awareness rather than a prayer to some God in the sky.