A skirmish immediately ensued between the parties. One Federal was killed and two wounded—the rest were made prisoners. They were completely deceived and surprised. The whole affair was as clever a piece of strategy as can be found in the annals of partisan service. Learning that two hundred and fifty of the enemy were at Richmond, Cluke broke camp at an early hour and marched rapidly in hopes to capture them. They started to Lexington, however, before he got to Richmond. The rumor (which had been industriously circulated) that Breckinridge had entered the State, was accomplishing its work. Major Steele was immediately dispatched, with three companies under his command. He overtook the rear-guard at Comb's ferry, and drove it in upon the column—a brisk skirmish and chase ensuing—Steele driving them into Lexington. He came very near being killed shortly afterward. Leaving his command halted, he rode to a picket post some distance off, with one or two men, and essayed to capture the videttes. One of them (after signifying that he would surrender) suddenly placed his rifle to the Major's breast and fired. A thick Mexican blanket wrapped tightly in many folds about his body, saved his life; yet the bullet pierced the blanket and entered his breast, breaking a rib. This wound disabled him, at a time when his services were most needed, for several days.

On the same night, Captain C.H. Morgan and Lieutenant Corbett, while reconnoitering near Lexington and seeking highly important information, were captured. Colonel Cluke moved on the night of the 22nd (crossing the Kentucky river at Boonsboro') to Winchester, reaching that place on the 23rd. He then sent detachments in various directions to excite and bewilder the enemy as thoroughly as possible. Major Bullock advancing toward Lexington, Lieutenant Colonel Stoner was sent to Mt. Sterling, and Lieutenant Cunningham was sent toward Paris. The most intense excitement prevailed and reports were rife and believed that rebels were flocking into the State from all directions. Cluke finding that he had reduced the enemy to inaction, and could do so safely, permitted men who lived in the neighboring counties to visit their homes and thus gave greater currency to these rumors. This had been one of the objects of the expedition. The other ends had in view, in undertaking it, to-wit: to obtain and keep a thorough understanding of the condition of affairs in Kentucky during the winter, and to enable the men to procure horses and clothing, were perfectly accomplished. Lieutenant Cunningham demonstrated successfully in the direction of Paris, confining the troops there to the town. Lieut. Colonel Stoner moved rapidly on Mt. Sterling and found the enemy, which had been stationed there under Colonel Wadsworth, just evacuating the town. Stoner immediately attacked and completely routed his enemy. The road by which the latter retreated, was strewn for miles with overcoats, guns, wrecked wagons, and all the debris of routed and fleeing troops. Stoner captured many prisoners and several wagons.

On the 24th, the entire command was concentrated at Mt. Sterling, and the day was spent in collecting and distributing horses, equipments, etc. The enemy at Lexington having recovered by this time from the fright given them on the 21st, by Major Steele, and learning the falsity of the rumors of a heavy Confederate advance, now came out in search of Cluke. On the morning of the 25th, a brigade dashed into Mt. Sterling. The command was much weakened, not only by the detachments which had again been sent out, but by furloughs allowed men who lived in the immediate vicinity. It was at once driven out of the town but retreated, unpursued, only a short distance. It has been said that the men came in so quickly, that the command was increased from two hundred to six hundred, before "the echoes of the enemy's artillery had died away." This brigade which had driven out Cluke, established itself at Mt. Sterling. Cluke now successfully inaugurated a strategy which has been greatly and justly admired by his comrades. Lieutenant Cunningham was sent with a few picked men to the vicinity of Lexington and directed to spy thoroughly upon the officials there. Ascertaining enough to make the project feasible, the Lieutenant sent a shrewd fellow (disguised in Federal uniform) to the headquarters of the officer commanding, upon some pretended business which enabled him to hang about the office. While there this man purloined some printed blanks and brought them out with him. One of these was filled up with an order (purporting to come from Lexington to the officer in command at Mt. Sterling), instructing him to march at once to Paris to repel a raid threatening the Kentucky Central railroad. He was directed to leave his baggage under a small garrison at Mt. Sterling. A courier properly dressed bore this order to Mt. Sterling, and dashed in with horse reeking with sweat and every indication of excited haste. He played his part so well that the order was not criticized and induced no suspicion. This courier's name was Clark Lyle—an excellent and daring scout.

As soon as the necessary preparations were made, the Federals marched to Paris and Cluke re-entered the town, capturing the garrison and stores. He remained until the 8th of March, his scouts harassing the enemy and keeping him informed of their every movement.

Another heavy advance of the enemy induced Colonel Cluke to retreat beyond Slate into the hills about Howard's mill.

Three companies were left in the vicinity of Mount Sterling, under Captain Cassell. One stationed upon the North Middletown pike, was so closely pressed by the enemy, that it was forced to cross Slate, below Howard's mill. The other two were also hotly attacked and driven back to Colonel Cluke's encampment, sustaining, however, but slight loss. Falling back to Ficklin's tan yard, where it was posted in ambush, and failing to entice the enemy into the snare, Colonel Cluke marched to Hazelgreen, determining to await there the arrival of General Humphrey Marshall, who was reported to be approaching (from Abingdon), with three thousand men.

Captain Calvin Morgan volunteered to carry a message to Marshall, and traveled (alone), the wild country between Hazelgreen and Pound Gap, a country infested with a crowd of ferocious bushwhackers. About this time, Cluke's whole force must have been badly off, if the language of one of his officers be not exaggerated, who (in an account of the encampment at Hazelgreen) declares that, "the entire command was prostrated by a severe attack of erisipelas."

After the effects of this "attack" had somewhat worn off, Lieutenant Colonel Stoner was sent back to Montgomery, and maintained himself there for several days, with skill and gallantry. Threatening demonstrations from the enemy induced Cluke to retreat from Hazelgreen and still further into the mountains. He established himself on the middle fork of Licking, near Saliersville. On the 19th, he found himself completely surrounded. Fifteen hundred of the enemy had gained his rear, ten hundred advancing from Louisa, were on his right, and eight hundred were at Proctor, on his left. In his front was the garrison of Mt. Sterling, five hundred strong, but likely at any time to be reinforced by the forces then in Central Kentucky. The roads in all directions were so well observed that he could not hope to escape without a fight.

His command was reduced to about three hundred effectives—the rest were suffering from the erisipelas. In this emergency, Colonel Cluke conceived a determination at once bold, and exceedingly judicious. He resolved to march straight on Mount Sterling and attack it, at any hazard. He trusted that the enemy would send no more troops there, but would rather (anticipating that he would seek to escape southward), send all that could be collected to intercept him in that quarter.

A tremendous march of sixty miles in twenty-four hours, over mountains and across swollen streams, brought him to McIntyre's ferry of the Licking, thirty miles from Mt. Sterling. Crossing on the night of the 20th and morning of the 21st, Major Steele was sent with his battalion via, Owingsville (in Bath county), to take position on the Winchester pike, beyond Mount Sterling, that he might give timely information of the approach of reinforcements to the garrison. Colonel Cluke moved with the rest of his command through Mud Lick Spring, directly to Mount Sterling. Colonel Cluke at the head of a body of men entered the town from the east, while Lieutenant Colonel Stoner with the two companies from the Eleventh Kentucky, the men of the Ninth under Captain McCormick, and Hopkins' scouts, charged in from the northwest.