On one hand:
$$x\cdot y=\begin{cases}0&x=0\\\lfloor x/2\rfloor\cdot(y+y)&x\text{ even}\\\lfloor x/2\rfloor\cdot(y+y)+y&x\text{ odd}\end{cases}$$
which can be proven directly (distinguishing cases $x=2n, \lfloor x/2\rfloor=n$ and $x=2n+1, \lfloor x/2\rfloor=n$).
On the other hand:
$$x*y=\begin{cases}0&x=0\\\lfloor x/2\rfloor*(y+y)&x\text{ even}\\\lfloor x/2\rfloor*(y+y)+y&x\text{ odd}\end{cases}$$
as per the "Peasant's Algorithm". Note this recurrence is almost the same as the previous one, except $\cdot$ (the ordinary multiplication symbol) is replaced by $*$.
How do we prove that $x\cdot y=x*y$ for all $x,y$? Take induction on $x$, and in fact take what is often called "transfinite" induction: assuming the statement to be true for all $0,1,\ldots,x-1$ (rather than just for $x-1$) you prove that it is valid for $x$.
Now:
$$0\cdot x=0=0*x$$
and, for $x>0$ we have $\lfloor x/2\rfloor<x$, so:
$$\begin{array}{rcll}x\cdot y&=&\begin{cases}0&x=0\\\lfloor x/2\rfloor\cdot(y+y)&x\text{ even}\\\lfloor x/2\rfloor\cdot(y+y)+y&x\text{ odd}\end{cases}\\&=&\begin{cases}0&x=0\\\lfloor x/2\rfloor*(y+y)&x\text{ even}\\\lfloor x/2\rfloor*(y+y)+y&x\text{ odd}\end{cases}&\text{Apply inductive hypothesis to }\lfloor x/2\rfloor\\&=&x*y\end{array}$$
which is the inductive step (assuming the operators$\cdot$and $*$ match for $\lfloor x/2\rfloor$, proving that it is valid for $x$).