About as fine an example of his work as you'll find is A Meeting by the River - Ry Cooder and V.M. Bhatt
I am going to check that out and order it tomorrow
You should enjoy it.
The technique used in that recording is a long established technique by Alan Blumlein. It involves two figure-of-eight mics. That mic pick-up pattern is literally a figure 8. The front half of the eight is signal impulse +Pos, and the rear lobe is signal impulse -Neg, a truly balanced signal.
When two figs-of-eight are crossed in perpendicular to each other, they create an X with truly square crossing (not represented well with this X). This X has the rounded lobes of the 8's, and, is essentially a clover leaf-like arrangement.
This is one of those moments when a picture is worth a thousand words, isn't it?
Now, thats Blumlein stereo.
Why are the mics turned away from the players?
Each mic is turned away from the center source by 45º off-axis to the centered source, which is referred to as 0º axis. The combined off-axis response is said to be 90º with Blumlein stereo. It is from a category of stereo techniques that are called Coincidental, for the fact that the sound influence arrives at the exact same moment to each mic. Coincidental stereo patterns can be mixed to monaural without phase cancellation issues. This was crucial in the days of mono. In fact, at first they were not thought of as stereo, rather, they were a way of getting a 90º image capture of an entire orchestra into a monaural mix; only 30+ years later were coincidental patterns found to be good for stereo reproduction - they were established during the mono years.
Mics of the First Order:
The mics being turned that far off-axis only produce an attenuation between mics. A first order mic can be turned outward to 55º off-axis before it starts to lose frequency response. From 0º -> 55º off-axis only produces attenuation, not frequency response alteration.
So, by turning the mic 45º from the source, and turning the other mic 45º the opposite direction, the right mic is hearing a quieter signal than the left mic. If the source stays at 0º, each mic hears the exact same sound pressure. But if the sound source is off of the 0º centered source point, one mic will begin to hear that source as being louder, and its image will be intensified or attenuated in that side of the mix, depending on where that source is within the sound field being captured.
Everything in front of the mics is properly represented in its proper location in the mix by this intensification/attenuation, just as your ears would be processing the same information. The blendings are based on clues established by attenuation of signal strength, or the intensification of signal strength, dependent on each players position within the sound field being captured.