That actually brought a soft chuckle from him. He certainly didn't expect people to realize that. After all, the point of many dreams was blending them with reality and letting people reflect on themselves. Her embarrassment was a bit amusing.
There is no need to apologize, my dear.
Terms of endearment were not really common from Morpheus, but she was charming, and she had caught on rather quickly. She was definitely a good choice to accompany him on his walk.