This is a very complicated case and I do not know what medication she is taking, so I cannot make any specific recommendations beyond the Bach Flower Rescue Remedy. In TCM some herbs are used for overactive dreaming such as processed Biota seed, Suan Zao Ren, Fu Shen, Lotus seed or Chinese Polygala. I would say the dream within a dream is due to dreaming at a much deeper state than she did prior to the neurological event. This causes people to “wake up”, but not really be awake and usually they feel paralyzed and panic. The first thing to understand is you cannot usually fight your way out of this, the best approach is to relax (I know it is very difficult). Meditation and dream work can also be helpful.