Exactly – nested dream within a dream within a dream. Each with their different set of rules and different levels of malleability. However. When you wake up from the original dream you will realize that there is no “real world” to wake up to. You, as an avatar, can be lucid at best, because as an avatar you are the dream. And that's simply because consciousness is not a substance.

It confuses the heck out of people. Because yes, while technically there is nothing anywhere and all is empty, the manifested dreams are real not only as perceived from within but also “objectively”, as is. They are just not what they appear to be in their essence, but that essence is no essence at all even though it's what you are. Well, emptiness is suchness, and while the world is illusory and only Brahman is real, Brahman is the world. But Brahman is neither this, nor that.

All in all, once you wake up from the original dream, you certainly feel like you could change even the laws of nature. You just don't see a reason to do so because you also see that the (dream) world is perfect as it is, and your avatar's mind cannot come up with any improvements.

But of course, that does not prevent some avatars from insisting that they know better and can, indeed, improve “creation”. Poor beings, because as avatars they can change as they see fit only dreams they themselves dream. With all other dreams they can only interact according to pretty strict rules. Well, they are not “there” yet, if they don't realize that “I” is utterly content with the setup of the original dream as it is.

So, God's mind, for a lack of better term, is the original dream or cosmos itself. Now, how and where does that dream wake up from itself? It's the same question as where the flame goes when it goes out.

And mind you, I, consciousness, God, Brahman, Tao, etc. does not need to wake up from anything.