Ok, revising again:
Dream Haunting (Su): Mullonga can visit the dreams of sleeping individuals currently shaken, frightened, or panicked by her terrify ability. To invade someone’s dreams, Mullonga can become incorporeal and enter the victim's body. The sleeper suffers from tormenting dreams and takes 1d3 points of Constitution drain upon awakening. After ending the dream haunting Mullonga gains a +1 bonus to her caster level for a full hour for each hour she spent haunting her victim's dreams. Furthermore, for the duration of this CL bonus the dream haunting victim always meets the requirements of Mullonga's frightful casting ability (as if the victim was a creature with a fear condition within 60 ft. of Mullonga). Mullonga is automatically expelled, becomes corporeal, loses her CL bonus, and becomes shaken for 1d6 rounds if she is haunting a victim who awakens. Mullonga does not have the inherent ability to become incorporeal except to haunt a victim's dreams.
Shade, can you add Terrify to the homebrews version? And let's decide on sleeping when scared. I had a proposal in post #863.