2. Regard all phenomena as dreams

• This is the First Slogan/Instruction of Point Two.
• Point Two is “The Actual Practice”. 
• Point two consists of nine instructions in Two Divisions. The two divisions are
  • 1) Cultivating Absolute Bodhicitta, which has five instructions, and
    • “Regard all phenomena as dreams” belongs to the first division, “Cultivating Absolute Bodhicitta”.
  • 2) Cultivating Relative Bodhicitta, which has four instructions.

In the Perfection of Wisdom Sutra in 8,000 Lines we find:

Subhuti: Like a magical illusion are these beings, like a dream. For not two different things are magical illusion and beings are dreams and beings. Any and all objective facts also are like a magical illusion, like a dream. The various classes of saints, from Streamwinner to Buddhahood, also are like a magical illusion, like a dream.

Gods: A fully enlightened Buddha also, you say, is like a magical illusion, is like a dream? Buddhahood also, you say, is like a magical illusion, is like a dream?

Subhuti: Even Nirvana, I say, is like a magical illusion, is like a dream. How much more so anything else?!

Gods: Even Nirvana, Holy Subhuti, you say, is like an illusion, is like a dream?

Subhuti: If perchance here could be anything even more distinguished, of such too I say is like an illusion, like a dream. For not two different things are illusion and Nirvana, are dreams and Nirvana.

Hereupon the Venerable Sariputra, the Venerable Purna, son of Maitrayani, the Venerable Mahakoshthila, the Venerable Mahakatyayana, the Venerable Mahakashyapa, and the other Great Disciples, together with many thousands of Bodhisattvas, said: “Who, Subhuti, are these grasping this perfect wisdom as here explained?”

Hereupon the Venerable Ananda said to these Elders: “Bodhisattvas incapable of falling back grasp this, or beings, persons reaching sound views, or Arhats in whom the outflows are realized as dried up.”

Subhuti: No one grasps this perfect wisdom as here explained [i.e. explained in such a way as really no explanation at all]. For no dharma at all is being indicated, lit up, or communicated. So here too, is not even one grasping it.

http://rywiki.tsadra.org/index.php/Chapter_II_%E2%80%94_Sakra_(RiBa)

Buddha Calling on Earth to Witness, 800s. Northeastern India, Bihar, Tetravan. Pala Period (750-1197). Chloritic schist; overall: 94 cm (37 in.). The Cleveland Museum of Art