Lady Gaga outdid herself last night. More specifically, she outbid herself. The pop icon, who ranks #1 on Forbes Celebrity 100 and #11 on the Forbes Power Women list, placed the top bid of $13,000 at a charity auction last night, winning a dinner with Steve Van Zandt (of the E-Street Band) and Maureen Van Zandt, along with a bottle of wine signed by James Gandolfini. The dinner is to be at a restaurant of Lady Gaga's choosing, and she announced her plans to go to Palma, a restaurant where she waited tables at age 19, serving Van Zandt himself.

“I used to stand on the corner and go, ‘Daddy! Steve was here – he wants gnocchi!’ " said Gaga.

The auction was one of many during the “Right To Rock” fundraiser put on by Little Kids Rock, a non-profit dedicated to funding music education in underprivileged schools. Gaga was on hand to receive the "Big Man of the Year" award, given to a “musical luminary who is passionate about helping Little Kids Rock to provide music education to school children who may not otherwise have access to music, and who also inspires and motivates kids.” The award is named after Clarence “The Big Man” Clemons, saxophone player in Bruce Springsteen’s E-Street Band, who passed away in June of this year. Clemons played sax on Lady Gaga’s hit single, “The Edge Of Glory” in January, 2011; it was the final recording he made.

For Lady Gaga, the award brought back memories. “My first experience with music was my father playing vinyl of the E-Street Band,” said the singer. “Clarence and the sound of his saxophone – that was the sound of my youth. It was the only instrument and the only poetry that described the way I felt when I was five and when I was six and when my Dad told me about growing up in New Jersey and what it was like to see Bruce on the boardwalk and make out with girls on the beach.”

The event featured performances by Little Kids Rock students, including a rendition of "The Edge Of Glory" on which Jake Clemons, Clarence's nephew, played saxophone. Billy Squier and Steve Van Zandt also joined the students on stage, and one 14-year-old student played a solo rendition of her original song, "Tonight." Singer-songwriter Matt White kicked the night off with his hit song “Love,” but it was the students who got the most applause.

“Without a music program kids might never pick up a musical instrument,” Jake Clemons told me. “The saddest thing is that you could have the next Alicia Keys who would never know that. No matter how hard it beats in their chest, they may never know their full potential.”

White, who attended Manhattan School of Music growing up, echoed a similar point. “I was a D+/C- student. I was really not good at anything. Music was the only thing I excelled at, so when I was 11 or 12, I knew that no matter what I did it was going to have to be with music. Those were some really pivotal moments in my life.”

“We actually witnessed it first hand,” said Steve Van Zandt, recalling a visit to a school in the Bronx where he played “Satisfaction” with a group of students. “25 kids, playing instruments. You’re looking at that spot, at those kids – there’s no chance that those kids would be doing that if not for this foundation. There’s where the rubber hits the road.”

“We’re the only country in the world that thinks art is a luxury,” said Van Zandt. “It’s not a luxury. Art is a necessity of life.”

At the end of the night, it all came back to Gaga. The oft-aloof star was jovial, dancing at her table and toasting with people seated at her table throughout the night. At one point -- as an auctioneer solicited bids for a keytar autographed by Gaga -- she rushed to the side of the stage and pulled off her diamond earrings, adding them to the bounty being auctioned off. "Lady Gaga said unless we go to $20,000 she wants the earrings back," announced the auctioneer as the bidding stalled at $16,000. The winning bid fit the bill at $21,000 -- enough to provide instruments for over 5,000 students.

“She’s a very interesting lady,” Van Zandt said of Lady Gaga. “People like her...people think they pop up over night or are manufactured. But when you start talking to her and you realize where she comes from, she’s been working a long time.”

"One story I would like to share with you is this," shared Clemons' widow Victoria. "My husband Clarence and I were at Universal Studios, recording on 'The Edge Of Glory.' Clarence was going through yet another struggle at the time. We arrived at the set and were seated. Lady Gaga pulled a chair out and she sat next to us. Clarence started sharing what he was going through with her. Lady Gaga grabbed his hands, looked into his eyes, and said, 'I believe in you seven days a week, not just five.' Those words meant the world to Clarence and helped him get through a lot."

"I would like to express my profound gratitude and admiration to Lady Gaga and her parents, Cynthia and Joe, for making a difference in the lives of so many children by being here tonight and supporting Little Kids Rock’s effort to provide music education to schoolchildren. Thank you so much for everything you do."

Here’s the full text of Gaga’s acceptance speech. The pop star teared up while speaking about her father, and dedicated The Big Man award to Victoria Clemons, "the true woman of the year":