No, Muslims do not call Jesus "Lord". They regard Him as a sort of prophet or messenger, from what I understand, but the Koran makes explicit that Jesus does Allah's will, not that those wills are the same or at least intertwined.

From The Cow: [2.253] We have made some of these apostles to excel the others among them are they to whom Allah spoke, and some of them He exalted by (many degrees of) rank; and We gave clear miracles to Isa son of Marium, and strengthened him with the holy spirit.

From The Women: [4.171] O followers of the Book! do not exceed the limits in your religion, and do not speak (lies) against Allah, but (speak) the truth; the Messiah, Isa son of Marium is only an apostle of Allah and His Word which He communicated to Marium and a spirit from Him; believe therefore in Allah and His apostles, and say not, Three. Desist, it is better for you; Allah is only one God; far be It from His glory that He should have a son, whatever is in the heavens and whatever is in the earth is His, and Allah is sufficient for a Protector.

Found at:
http://www.hti.umich.edu/cgi/k/koran/koran-idx?type=simple&q1=Isa&size=First+100

There's a verse in the Qu'ran that speaks somewhat to this:

In sura 3:49 Jesus is heard to say: "I have come to you with a sign from your Lord: I make for you out of clay, as it were, the figure of a bird, and breathe into it and it becomes a bird by God's leave. And I heal the blind, and the lepers, and I raise the dead by God's leave."

So, Muslims do recognize that Jesus, with the permission of Allah, can raise the dead and heal the blind and leperous, and turn a clay bird into a real one.

As for the hadith, I did a quick check of the on-line collections and turned up nothing that says anything of the sort. Now I'm interested in where this one comes from.

Doesn't that (turning a clay bird into a real one) originally come from one of the Apocryphal books? Nicodemus, I think.

Interesting