Mira Frost

This is full of spoilers on who Mira Frost really is, and some of it might not ever be laid out in a proper story

Who Is She?

She came from the previous universe, along with Vordea, her "legacy of terror" as she calls her. She was the final commander of what was left of the Navy of the spacefaring human civilization, and lived on one of the few remaining space stations, Demhe Station, in an increasingly cold and dark universe. The last star had gone out billions of years before she was born, and they were truly at the end of time. Her full title was Fleet Admiral Mira Frost.

Her Powers

From the place she came from, magic was an impossible fantastical concept, much like where we live. But she still kept the scientists of Demhe Station busy, asking them to work on whatever they wished, even if only to pass the time. All of them knew there was little hope for a future in the desolate wasteland they inhabited, and that they could very well be the last generation.

One day, several years after the creation of Vordea, one of the scientists came to her with a vial, and said whoever drank it would gain the power to defy reality, to defeat entropy. They had intended to give it to Vordea, the one who would survive the Big Rip that they had begun to detect on the radio telescopes. However, Mira only gave a very small portion of the vial to Vordea, and kept most of it for herself, as not even she was immune to fear of death.

When the Big Rip finally reached Demhe Station, she rushed into the room holding Vordea, and they both drank their vials, ensuring they would survive to form the next universe. The uncontrolled reality warping that occurs all around Mira at all times is a side effect of her drinking a concoction never intended to be drank by a pure human.

Despite this, Vordea not drinking the entire concoction is a good thing, as unbeknownst to any of them, it would have shattered her mind and turned her fully into Azathoth, the blind idiot God. With the tiny portion she received, she instead became the great destroyer and entropy reducer that she is.

Why does Mira think the Universe is a dream?

Her powers have partially destroyed her mind, and she doesn't recognize that what she sees is the real world, and believes she is stuck inside of a dream. Eigengrau is actually correct and that a trap can be constructed to permanently trap Mira in her dreamless sleep, but neither of them know that it will work, until Eigengrau eventually works it out in the next kalpa, which we won't ever be covering.

What is Vordea, actually?

She's mostly human, but the scientists added in some other things. The primary one was squid DNA, which is why she has the tentacle and ink motif. The remaining part, the "something else" is mostly unknown. Even Mira doesn't know exactly what they did, and neither do the scientists. Vordea's DNA sequencing is wholly alien, and on the few occasions in kalpas where portions of her blood are encountered and sequenced, it's dismissed as impossible. The DNA is sextuple stranded, four dimensional, and can't be properly comprehended, to say nothing of the nucleobases themselves, of which there are seventeen.