Dream raised an eyebrow. He wasn't accustomed to being laughed at. Had the scene played out a few centuries ago, this likely would not have ended well for Candy. As it was, Dream had learned a bit more patience, and was able to 'shrug it off'. As she said, no reason not to be polite.
He lifted Candy's hand and bent his head to press it to his lips. Dream was not the type of person that shook hands.
You are not dead. I am Morpheus. You are in the Dreaming. Surely not for the first time. As we walk, things will become more familiar to you.