Hello Gardenia, there’s a lot here so let’s go through it little by little, OK?
Firstly I’m mindful of your original post entitled “I want to understand” – please relax about this and just allow for the possibility that “understanding” in the sense we are looking for it here, often called “insight” in a Buddhist context, is not a mental event – it doesn’t take place in thought. “Mind” is the wrong tool for this job. So the questions and speculations you ask above – although valid on the level of mind – can’t help us here.
Just trust your intuition that you are "identifying with something that isn't there" -- let's have a look to see if we can find what is actually going on.
Let’s look at a couple of things from your post, mindful of the fact that you have recognised an enduring identification with “body/mind”:
Experience is just sights, sounds, thoughts, smells, tastes and tactile sensations. But the organs/sense bases are located in this body-mind.
Is this your direct experience or is it an assumption that sense organs are located in a specific place?
In the dream, dream Gardenia may go for a walk in a beautiful garden, looking at the flowers, smelling the roses, listening to the birds and feeling the breezes – but is it dream Gardenia’s eyes that see, ears that hear, skin that feels?
Just be aware of sensation as it is happening now – do you have direct experience of eyes seeing and of ears hearing and of skin feeling? Or are there just sights, sounds and sensations turning up “somewhere”?
Where are sense arisings “received” as it were – do sights appear in the eyes? Does sound appear in the ears? Does sensation appear in the body? Please reflect on the “space” in which experience shows up – is that space the “body/mind”? Just take a look.
My reflection in the mirror says it's 'me'.
Sorry, but this made me laugh – can a reflection talk?
What is it that says the colours and shapes showing up in a mirror are “me”?
So today’s koan is:
Where is anything happening?
Don’t try to figure it out conceptually – just
look.
xx
People see it far away. What a pity! They are like a man who, standing in water, complains of thirst -- Hakuin