It may not be out of the way to say here that throughout the annals of human history, there was no other individual who could be of more inspiring personality than Guru Gobind Singh. At its climax the tenth Nanak infused the spirit of both the saintlihood and the undauntedness in the minds and hearts of his followers to fight oppression in order to restore justice, righteousness (Dharma) and to uplift the down-trodden people in this world.The Guru instructed his followers to lead a well-meaning and disciplined life.
It is said that after the martyrdom of Guru Tegh Bahadur, the tenth Master declared that he would create such a Panth (nation) which would not be cowed down by tyrant rulers but it would rather challenge the oppressor in every walk of life to restore justice, equality and peace for mankind. He further resolved that he would feel worthy to be called Gobind Singh only when any single member of his Khalsa Panth would successfully and undauntedly challenge the army of one hundred and twenty-five thousand opponents in the field. This point was rightfully proven at Chamkaur Sahib when Sahibzada Ajit Singh (Guru's about 18 years old eldest son) challenged the Mughal forces and their allies, the hilly Rajas.

"The Divine Guru hath sent me for religion's sake on this account, I have come into the world, extend the faith everywhere seize and destroy the evil and sinful. Understand this, ye holymen, in your minds I assumed birth for the purpose of spreading the faith, saving the saints and extirpating all tyrants." (Guru Gobind Singh- Chaupai, Bachitar Natak)

Guru Tegh Bahadur's martyrdom symbolized in itself the resistance to the tyranny of Muslim rule in favor of a new society. When evil is holding its head high, should a holy man knuckle under it or take up arms to combat and destroy it? The young Guru, Gobind Rai, decided in favor of the latter course i.e. to combat evil and uphold righteousness. He thus enjoined upon his followers to make use of the sword if all other means failed to liquidate the wicked and his wickedness. In order to achieve this mission, he issued 'Hukamnamas' (circular letters of authority) to his followers to present to him arms of different designs. The Guru's orders were obeyed with great zeal and devotion. He himself wore uniform and bore arms and induced others to practise archery and musket- shooting. He encouraged various muscle-developing and strenuous sports as part of the program of physical culture. Many followers with martial instincts whose forefathers had served the Guru's father and his grandfather, flocked to him.

PIR BUDHU SHAH:
Pir Budhu Shah was a Muslim saint who lived at Sadhaura, about ten or fifteen miles from Paunta Sahib. He was well known for his piety and had a large number of followers. He had heard of Guru Nanak and his mission. He had also learned that Guru Nanak's throne was then occupied by Guru Gobind Singh who was staying in the neighborhood. Ultimately he decided to visit him. The Guru seated the Pir near him who beseeched," Pray! tell us how one meets God Almighty." During the discussion the Pir humbly submitted to the Master. There was a glow in the eyes of the Guru which radiated Divine Light and the Pir exclaimed with sudden joy," Allah-hu- Akbar!" - Great is God Almighty. After a while the Pir confessed," Master, I was spiritually blind and you have shown me the Light." Blessed are the souls on whom the Guru bestows the divine grace.
The Guru remained about three years at Paunta Sahib and his fame attracted poets, singers and learned people to his court. During this period he composed Jap Sahib, Swayas and Akal Ustat.In Akal Ustat he writes:
"Without Thee (God) I worship none Whatever boon I want, get from Thee."
The Guru makes the above point clear in his thirty-three Swayas:

"Some fasten an idol firmly to their breasts, some say that Shiv is God,some say that God is in the temple of the Hindus, others believe that he is in the mosque of the Musalmans, Some say that Rama is God, some say Krishna, some in their hearts accept the incarnations as God, but I have forgotten all vain religion and know in my heart that the creator is the only God." (Swaya- XII)
"Why call Shiv God, and why speak of Brahma as God?. God is not Ram Chander, Krishan, or Vishnu whom ye suppose to be the lords of the world.
Sukhdev, Prasar, and Vyas erred in abandoning the one God and worshipping many gods. All have set up false religions, I in every way believe that there is but One God." (Swaya- XV, Guru Gobind Singh)

CREATION OF THE KHALSA:
A small tent was pitched on a small hill now called Kesgarh Sahib at Anandpur and an open air dewan (assembly) was held. The Guru drew his sword and in a thundering voice said," I want one head, is there any one who can offer me?" This most unusual call caused some terror in the gathering and the people were stunned. There was dead silence. The Guru made a second call. Nobody came forward. There was still more silence. On the third call there rose Daya Ram, a khatri of Lahore who said," O true king, my head is at thy service." The Guru took Daya Ram by the arm and led him inside the tent. A blow and thud were heard. Then the Guru, with his sword dripping with blood, came out and said," I want another head, is there anyone who can offer?"

"Satgur mera mar jiwalei." (Bhairon Mohalla 5, p-1142)
'My lord can raise the dead to life.' (Translation of the above)

This was not an ordinary feat, this was the most unparallel and supernatural act which was performed through the direct Will of God. The Guru himself authenticates this act:

"Khalsa is the army of God Khalsa is created with the Will of God." (Guru Gobind Singh- Sarbloh Granth) Dharam Das, a Jat from Delhi came forward and said," O true king! My head is at thy disposal." The Guru took Dharam Das inside the tent, again a blow and thud were heard, and he came out with his sword dripping with blood and repeated," I want another head, is there any beloved Sikh who can offer it?"
Upon this some people in the assembly remarked that the Guru had lost all reason and went to his mother to complain. Mohkam Chand, a washerman of Dwarka (west coast of India) offered himself as a sacrifice. The Guru took him inside the tent and went through the same process. When he came out, he made a call for the fourth head. The Sikhs began to think that he was going to kill all of them. Some of them ran away and the others hung their heads down. Himmat Chand, a cook of Jagan Nath Puri, offered himself as a fourth sacrifice. Then the Guru made a fifth and the last call for a fifth head. Sahib Chand, a barber of Bidar (in central India), came forward and the Guru took him inside the tent. A blow and thud were heard.
Guru came this time in a little while,and finally Guru emerged from the tent and with him came the five Panj Pyaras (five beloved ones). They were in the most radiant form. There were exclamations of wonder and the sighs of regret on all sides. Now people were sorry for not offering their heads.

THE MASTER BECOMES THE DISCIPLE:
After the Guru had administered Amrit to his Five Beloved Ones, he stood up in supplication and with folded hands, begged them to baptize him in the same way as he had baptized them. This was the height of this remarkable episode setting up unparallel example in the world that first as Guru, he created the Khalsa blessing them with power, supremacy and glory, and then he himself became their disciple- Wonderful is Guru Gobind Singh, himself the Master and himself the disciple. In the annals of human history a disciple could become a Guru but never a Guru became a disciple.
The Five Beloved Ones were astonished at such a proposal, and represented their own unworthiness, and the greatness of the Guru, whom they deemed God's Vicar upon earth. They asked him why he made such a request and why he stood in a supplicant posture before them. He replied," I am the son of the Immortal God. It is by his order I have been born and have established this form of baptism. They who accept it shall henceforth be known as the KHALSA. The Khalsa is the Guru and the Guru is the Khalsa. There is no difference between you and me. As Guru Nanak seated Guru Angad on the throne, so have I made you also a Guru. Wherefore administer the baptismal nectar to me without any hesitation." Accordingly the Five Beloved Ones baptized the Guru with the same ceremonies and injunctions he himself had employed. The Guru was then named Gobind Singh instead of Gobind Rai.
Guru Gobind Singh was the first one to take Amrit from the Khalsa, the Five Beloved Ones. About 80,000 men and women were baptized within a few days at Anandpur.
By creating the Khalsa, the Guru embedded two qualities in one person. A Khalsa is a Saint-Soldier. A Sikh is a saint because he worships the All-Pervading divine spirit and in whom that spirit shines day and night like a full moon. A Sikh is a soldier because he is ever ready to take up the arms to uphold righteousness.
Guru Gobind Singh gave the Sikh a new appearance and administered them the Baptism of the Sword. He infused in them a spirit of fearlessness and a belief in there own invincibility and told them to maintain the five symbols*, each begins with the letter K. (*symbols are: Hair (Kesh), Sword (Kirpan), Underwear (Katcha), Comb (Kanga), Bracelet (Kara).)
The Guru then administered Sahib Sri Guru Granth Sahib ji, placed five paise and a coco-nut before it and solemnly bowed to it as his successor. Saying 'Waheguru ji ka Khalsa, Waheguru ji ki Fateh', he circumambulated the sacred volume and proclaimed," O beloved Khalsa, let him who desireth to behold me, behold the Guru Granth. Obey the Granth Sahib. It is the visible body of the Gurus. And let him who desireth to meet me, diligently search its hymns." He then sang his self-composed hymn:

"Agya bhai Akal ki tabhi chalayo Panth
Sabh Sikhan ko hukam hai Guru manyo Granth
Guru Granth Ji manyo pargat Guran ki deh
Jo Prabhu ko milbo chahe khoj shabad mein le
Raj karega Khalsa aqi rahei na koe
Khwar hoe sabh milange bache sharan jo hoe."
Translation of the above:
"Under orders of the immortal being, the Panth was created. All the Sikhs are enjoined to accept the Granth as their Guru.
Consider the Guru Granth as embodiment of the Gurus. Those who want to meet God, can find him in its hymns. The Khalsa shall rule, and its opponents will be no more, Those separated will unite and all the devotees shall be saved."