doesn't ethanol also form an azeotrope with methanol?
According to CRC Handbook of Physics and Chemistry's Table of Azeotropes, no such azeotrope is formed :)
to dry the distilled ethanol with CaO.
I believe you can do it in one step. Distill with CaO... keep air away from it (transferring from the receiver, and store cold). Please correct me if wrong.