nightmare

I hadn't had my re-occurring nightmare in some time - but last night it appeared again, and I approached it with knowledge and humor.

Premise of the dream:

I live in an old victorian house somewhere in new england, and the third floor is magical and has been left untouched for decades. It is pristine and its only inhabitor is an evil witch who haunts you so badly that no one can live there, and the door to the third floor remains shut.

The dream began with me living WITH the witch - dealing with her and living on the third floor. I had this idea that I could make it work.
It did NOT work, and I eventually moved to other floors of the house. In harmony no less. When the witch would act rowdy, I would calm her down and tell her that I meant no harm.

Last night I was back in the house for some reason. I was showing people around - I think I was trying to sell the house? I can't recall. Anyway, i was showing people around and when we got the third floor I became aware that I was having this re-occurring dream.
So I'm dreaming - but I'm removed from the dream - while its happening I'm laughing about how I used to be so scared of the this dream. The scary figure is now humorous.
I have somehow conquered my scary dream?