I don't know about daydreaming, but I have had dreams within dreams--I had one such dream last night. In fact, the first time I got involved trying to lucid dream, I had several dream within dreams and false awakenings leading up to my very first ld.
The second time around (I just had my second LD night before last), I didn't have any FAs or dream-within-dreams leading up to it. That said, last night I had a really crazy dream that I was dreaming and in that dream I was lucid. it was pretty crazy. So, if one can be in a dream within a dream, I don't see why one couldn't daydream within a dream.
All these layers of dreams upon dreams...it gets confusing sometimes, almost reminiscent of Inception 
~SilverWolf~
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