Reddit mentions of Daoism Handbook (2 volume set)

Well, you are in luck, because the quality and number of English language books on daoism in China has increased significantly in recent years. My own journey with daoism (which began about twenty years ago) was much more circuitous than it could have been just ten or fifteen years later.

More in a moment. Just have to dig up the available sources, most of which are packed for moving next week.

Ok, back.
Here is the newest and best source for a non-specialist - Livia Kohn's Introducing Daoism. It is readable, comprehensive, and best of all, relatively cheap. It is not a reference text, so that keeps the price down.

As u/grass_skirt mentioned, Robinet's work is also excellent, but more in depth and academic than the Kohn introduction.
If you get really excited and into it - Kohn edited a fantastic two volume grad-level text - Daoism Handbook - but it is better read at the library, unless you want to spend $200+.

What you were told by the Daoist is not entirely wrong, but it is such a distillation and simplification that it bears only passing resemblance to some of the story of Daoism in China.
Kohn's book lays out all the major strands quite beautifully. Enjoy!