My Tweety likes to lay next to me, but wakes me up jumping over to the window to see other kitties out on the tiles all night which I don't permit, she has to be home before dark....
Nearly every cat I've lived with has done the paw and face twitching thing in their sleep. Sometimes they break out into a full "run" in their sleep as well while doing this.
Stardust likes to curl up next to me and sleep. Once she started running in her sleep and she moved so much she woke me up.
I hear ya....I've always thought our kitties dream too! =)
One time, Skunkie's hissing woke me up out of a dead sleep. I bolted upright in bed, only to see Skunkie knocked out w/ some twitching paws. I knew she hissed in her sleep!!! LOL I've also heard her chattering in her sleep, just like they do at birds!!! LOL