When does Miles realize Prince Edward really was royal in prince and the pauper?

Miles realizes Prince Edward is truly royal when he observes the prince's instinctive behavior and noble qualities that set him apart from Tom Canty. This recognition deepens when he witnesses the genuine concern Edward expresses for the well-being of others, reflecting a deeply ingrained royal nature. Ultimately, Miles's understanding solidifies when they encounter people who recognize Edward as the true prince, confirming his royal identity.