Hi, welcome
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At application load we re-index (Are we reading from the database and pushing the DAO's into the cache?)
DAO's into the cache? sorry I don't understand that.
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When we perform FullTextQuery are we only searching the indexes and the cache or will it go against the database as well?
Most work will be done on the index. After the matching results have been identified and sorted, then pagination is applied and only the needed entities are loaded from the database by using batching and efficient loading by primary key, to make sure they are returned according to original structure and being consistent with the current database transaction.
You have the option to avoid all database hits by using
Projections. mostly useful to provide "previews" and text extractions in a list of results, before loading a single entity after user selection.