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Penelope comes to Mackenzie because she claims her dreams are being stolen. Mackenzie first acquires a special invention from Cromwell so that she can see into Penelope's dreams and understands what happens: a strange creature is seen fleeing from Penelope's just before she wakes up. Mackenzie investigates further and finds a way to enter the Dream World, but finds no one there that can help because the rest of the town is not yet asleep. Finding a way to convince everyone to fall asleep at the same time that Penelope does, she is then able to stop the fleeing figure and reveal it to be the pastry chef in town. The chef admits to the crime, using the crystallized dreams as an ingredient in her Sweet Dream Cake dessert. Fortunately, Penelope and the chef agree that the chef will only take Penelope's dreams once a week.