What do you do when teaching a student who seems more skillful than you?

I agree with experts answer. Thanks for the invitation

Just think like this. There is a reason why you are the one standing in front of the class and not THAT student. Don't be intimidated but also don't compete. If one student is more skillful than you then look at the brighter side he/she can help you in class. It is never wrong if a teacher learns something from their students. In fact, that is how our lives should be. Life is a never ending process of learning. 

thanks for the invitation

The best way of teaching is interactive method of teaching, so all students will participate in process without feeling of any problem with that.

Even I am a teacher it's a continue learning for us. I will recognize her/him for doing a great job at school. 

Simply give them more challenging questions or activities to do. You might also like to make use of their skills in helping you with your lessons.

I never met such a student, so far :-), but if I do, I will be happy, as I love smart and clever people 

Incorporate your classes to be able to accommodate the student. Allow it to be interactive enough and allow the student to give input without being authoritative and demeaning toward you that may take away credibility to your teaching. A good attitude toward this situation would also be to equip yourself with the best tools possible, always go into your classes well prepared for the lecture outcome and never leave a question unanswered, even if you can only respond to it at the next lecture. This way your students will be able to open up with their questions and expect correct answers from you.

It is an imaginary question I can not answer.