Oh, that was funny! I, too, assumed that Lois was the woman doing the fantasizing, but I can see Cat cuddling with a sleeping Clark, a sleeping Clark smiling at what he thought was a dream Lois, and a very real and extremely furious Lois ripping the fixtures out of the walls and off the ceiling at the sight of Clark making out with Cat, whom he repeatedly insisted meant nothing to him. Clark has to watch out where he sleeps so he doesn't get attacked like that on a continual basis.
I'm sure glad I don't have problems like that.