Gr8heera I would like to help you with** you** English.
first you said
should be,
I, lovely friend, WAS dreaming. (if past tense)
or
I, lovely friend, AM dreaming. (present tense- if you are dreaming now)
‘Is’ is NEVER used after ‘I’. I don’t understand why pures Pakistanis do that!! My mom does that to when she speaks English, and it annoys the heck out of me!