Most important of all, there is no right or wrong way to write - there's only what works for you. I was taught to write every day, but I know a writer (a bestseller at that!) who only writes on weekends.
If you aren't having fun, if you aren't anxious to find out what happens next as you write, then not only will you run out of steam on the story, but you won't be able to entertain anyone else, either.
I've written short stories in first person, but you have so much more control writing in third person. Third person, you know what everybody's thinking. First person is very limiting, and I could never sustain a first person novel before.
I don't write from dreams because I don't remember mine, but I had a fragment of an image left about twins, whose father was telling them how their lives were going to go for the next eight years. I wrote a scene about that, and then another and then another and then another, and after five months I had 732 pages.
After I recovered from 'Lioness', I wanted to write something about animals because I really like mythical creatures, especially dragons. At 12, I was one of those semi-recluses who did better with animals than people. Out of that, came the character, Daine, who could communicate with animals.
With each book, in each place, I have to keep an ongoing map as I write because otherwise I don't know where I am.