You will spawn in the Super Villain Prison's Lab. You will see a guy with grey hair, his name is Dr. Spyglasses. He will tell you that he has captured 4 new villains. El Mustachio, Gretchen Grimlock, Mr. Silva and Betty Jetty. You can do the dreams in any order.
You will spawn in his dream mansion. You will see that the windows are closed, and all doors are locked. Not much you can do here but grab a Meat Treat or watch the cowboy sleep. Go into Mr. Silva's dream and you will spawn in a classroom, grab the crowbar. Go back into Mustachio's dream and crowbar the door open. Mustachio will wake up and you must hide behind a plant quickly. He will go through the door. Go out the door and Mustachio will see PLAEASE CONTINUE