Welcome to DV! 
I'll try to answer the way I know, but you might want to wait for a second opinion of a more experienced lucid dreamer. Great questions, btw!
 Originally Posted by TheShaps
First of all it takes me a long time to fall asleep,
Maybe this problem can be at least minimized by using a "smart alarm" (shorter, quieter), or by purposely trying to stay drowsy, or by shortening the out of bed period of WBTB? Things like that are very variable between different people and require a lot of personal experimentation to get right. You also can try to "fake seeing dreams" while trying to fall back asleep - for me it helps, since it distracts me from the effort of falling asleep, and also faking it eventually makes the brain going with the flow and actually dreaming.
and when I fall asleep I cannot wake up again by the alarms, I just simply keep on sleeping and cannot retain any descent level of consciousness.
Yeah, that happens to me too... Not sure how to fight it either, except by practicing awareness and RCs.
My dream recall ability went up to 2-4 dreams per night, and two nights ago I knew I was dreaming, I was dreaming about dreaming
This is a very good progress, and technically a lucid dream (even if short or not that vivid)!
The second time you knew you were dreaming before sounds more like a FA - so basically when ever you suspect you might be dreaming and upon each awakening (true or false) just do your RCs to spot the false ones and this will increase your awareness and dream vividness.
Also I cannot enter full SP, but my body becomes heavy and numb.
Cannot stress this enough - SP is not required to induce lucid dreams (even wake induced). There is one sub-method of WILD (out of like ten sub-methods) that uses it, but it's more useful for OBEs where you need to stay still to "exit" your body [imho, OBEs are just a subtype of LDs in which some sensory information comes from RL, which is why they are so "convincingly mystical", but that's just my opinion]. I'm getting of topic here - I would suggest to ignore SP and even HH completely during all wake induced attempts. If they happen, just let them run in the background and focus on staying aware, and "watch" the pre-dreams if they form (so you'll feel the difference when the real dream starts).
Will taking Melatonin increase my ability to have lucid dreams and enter SP and fall asleep faster?
I'm not a supplement user, so I should leave this question for others to answer. But my take on it is that Melatonin will probably shorten the duration of your total sleep so you'll have to adjust the timing again. It might increase REM rebound, making it easier to get into a dream, but other than that I can't see major benefits for LDs. About its safety - for now studies say it's mostly safe and possibly beneficial, but even water can kill a human in excess amounts and no studies of long term Melatonin supplementation are known to me...
So does that mean when I dream I actually see my dream but I am not concussions enough to see the dream, and it registers in my brain like a normal memory of eye sight from real life? What can I do to improve my visualization ability?
This is definitely at least sometimes the case. However dream vividness is very variable - they can be colorful, black and white, animated, even more vivid then real life. In normal dreams you just have to take what you get, but by being good enough at "lucidity", you'll be able to choose what ever vividness you like. Easy methods to increase vividness in a LD are of course RCs and stabilization - even just by using these you can sometimes get lifelike vividness.
What am I doing wrong, and can improve?
Yes of course you can improve! It's very rare to even get that far in only 13 days, so you must be doing at least most of it right! And don't forget that these things are very individual - so the most important thing is to have the consistency to keep practicing the basics (RCs, recall, awareness), while also experimenting with methods, timing, etc - to find the ones that work for you.
I can give you a personal example. I kinda lost interest in LDing a while back, when it was much easier for me than it is now. Now I'm feeling I'm getting back there, but still have problems like countless FAs, despite trying to RC every awakening. I however know that eventually this habit while leak into my dreams and will solve this problem - it's very important to stay patient and keep a positive approach!
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