There is no reason to think that Cloak of Dreams would cause Invisibility to end, is there?
Cloak of Dreams
You are surrounded by a soporific aroma that causes living creatures that begin their turn or end their movement within 5 feet of you to fall asleep for 1 minute. Creatures must save each time they begin their turn or end their movement within the cloak of dreams, even if they have previously saved against the effect. Sleeping creatures are helpless but can be awakened with a standard action or after being wounded. Creatures with the scent special quality have a –4 penalty on their saves.
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The spell ends if the subject attacks any creature. For purposes of this spell, an attack includes any spell targeting a foe or whose area or effect includes a foe. Exactly who is a foe depends on the invisible character's perceptions. Actions directed at unattended objects do not break the spell. Causing harm indirectly is not an attack. Thus, an invisible being can open doors, talk, eat, climb stairs, summon monsters and have them attack, cut the ropes holding a rope bridge while enemies are on the bridge, remotely trigger traps, open a portcullis to release attack dogs, and so forth.
I think casting Cloak of Dreams while adjacent to an enemy would break invisibility (casting a spell whose area includes a foe) but casting Cloak of Dreams outside range and then walking up to an enemy would not break invisibility, since at that point it seems as indirect as triggering a trap whose area includes the foe.
