I think the key is realizing that since you're in a dream, nothing can possibly pose a threat to you. I just had a dream that started out with me finding a bunch of Brown Recluses (highly poisonous spiders) in my bed. It easily could have turned into a nightmare, but somehow I remembered to Reality Check and once I realized I was a god before those lowly spiders, I had a bit of fun smashing all the spiders I could for a while.