Substance dualism goes so far as to say that there are two realities, not simply two substances both of which are based in reality and therefore take on two different forms. The fact that consciousness is based in reality suggests that it consists of matter of some sort. The mystery only arises when we make the assumption that it belongs to some strange immaterial realm.
Wrong again. Where do you get the idea that to be "real" something must be (and can only be) "matter of some sort"?
Because every thing that is real is made out of something, namely energy and matter. Otherwise it could not interact with the rest of reality. Consciousness clearly interacts with our brains. On the other hand illusions are non-existent outside of our minds.
Really? You're clearly resorting to a circular argument here. One that you can't support otherwise. (I note, also, that you've now gone from "if it's not matter it's not real" to "if it's not matter OR energy it's not real"). Define "real" (in a non-circular manner).
Bad "definition". After all, much of our technology arrives BECAUSE of, rather than INDEPENDENTLY of, our hopes, wishes and dreams.
Other than being irrationally based, our wishes, hopes and dreams may provide us with the inspiration for new inventions. But it too can provide us with false beliefs and impossible dreams.
A) f*ck all to do with the discussion (what is reality? since you apparently need reminding). B) not all hopes, dreams, wishes are "irrationally based".
Reality is all that is, ever was, and ever will be. Including mind and matter. As well as what we perceive.