Title: "Dream Sorcerer"
This is a reference to the song (and album) "Dream Weaver", first released by Gary Wright in 1975. It may also be a reference to the 1987 film A Nightmare On Elm Street 3: The Dream Warriors, in which a group of teens, like the Three, join to fight the dream-invading killer Freddy Kreuger. The line in this episode "If you die in your dreams, you die in real life" is a direct quote from this and the entire series of the Nightmare movies. It could also be a reference to the Bobby Darin hit from 1959, "Dream Lover".