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Válmiki
Yoga-Vāsistha, Book 6: Nirvāna-Prakarana (On ultimate extinction) - part 2. Chapter 165 - On the similarity of waking and dreaming
Vasistha continued: In the state of waking dream the dream passes under the name of waking; and in the state of dreaming wakefulness, this waking goes by the name of sleeping. 1
The dream terminates into waking, and the waking man rises from his dreaming, and falls back into it again; so one awakened from his dream like waking, falls afterwards to his waking dream.
The dream of the waking dreamer, is to be called a dream also, as the waking dream of this world; and so the waking 2 of the sleeping waking, is to be styled his waking state.
Therefore that wakefulness 3 of one, and remains in his dreaming state, is to be called his waking likewise and not his dreaming; so also the waking dream 4, and the imaginations of airy castles while one is waking, is to be designated his dreaming and never as his waking.
Whatever lasts for a short while, as a temporary delusion or flight of imagination, passes under the name of a dream even in one's waking state; and so the short watchfulness of consciousness in the state of dreaming, is known as dreaming and never as waking.
Therefore there is no difference whatever, between the two states of waking and dreaming, beside the absence of one of these two in the other; 5. Again they are both unreal, owing to their blending with one another: 6.
The waking dream of the world, vanishes under its unconsciousness in death; and the consciousness of dreaming is lost, under the knowledge of its being an airy nothing. 7
The dying persons that does not come to perceive the vanity of the visionary world at his death-bed; can have no sight of the state of his waking 8, in the next or future world.
Whoever believing himself as alive, among the varying scenes of this vacuous world, lives content with them; he can never come to the sight of the visions, which await upon him.
As the intellect displays its wonders, in the exhibitions of the various scenes of worlds, to the sight of one in his dream; so does this universe appear before the minds of men, at the time of their waking.
These creations which are so conspicuous to sight, are at best but nothing in their transcendental light: and all the forms of things, are as the empty shadows of them appearing in our dreams.
As the world with all its varieties of visible objects, appear in its inane and shadowy form in the dream; so it is seen in its vacuous and intellectual form only, in our waking state 9.
It is the nature of the vacuous Intellect, to show the form of the world in its own firmament; so does this earth appear unto us, amidst the spacious atmosphere, like the orbs of light in the skies.
It is the wondrous display of the intellect, that shines before us under the name of universe; and these wonders are as inborn and innumerable in itself, as the watery and earthly particles, are connate with and diffused throughout nature.
What thing is there in it, which you can mistake of a reality in this unreal world; that is situated as a vacuous body in the infinite womb of vacuity.
The words recipient, receipt and reception, or the percipient, perceived and perception 10, are all meaningless with regard to this vacuous world; and whether it is a reality or unreality, we have no perception of it. 11
Whether it is so or not or be it anything otherwise, 12; yet why should mistake it for anything at all, in whatever light you take it, it will amount to your mistake of an empty ball for a fruit 13
Footnotes
1. Each of the three states of waking, dreaming and sound sleep admit of three conditions viz. waking wakefulness, waking dream and the waking sound sleep; again dreaming watchfulness, dreaming dream and dreaming sleep; and lastly the sleepy waking, the sleepy dream and the sleepy sound sleep (see the scholium of Sureśvara for instances of every Kind).
2. or consciousness
3. or consciousness
4. of the existence of the world
5. the absence of shortness in waking, and that of durability in the dream
6. dreaming blended with the view of the phenomenal in waking; and the wakeful consciousness blending with dreaming
7. The world recedes as heaven opens to view. Pope
8. or resurrection
9. although it seems to be tangible body
10. the subject, object and attribute
11. Because the presence of everything is lost, at the absence of its properties, which are adscititious only
12. as others may have it
13. so says the Vedanta:- 
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