Option #1: Oblivion in laudanum.
The solution is extremely Victorian: F.F. Gebrandt's Superior Laudanum, to help you sleep at night. You can find it in the Echo Bazaar (click the "Bazaar" tab), in the shop Nikolas Pawnbrokers. Each bottle costs one Echo, which can be quite pricey if you're trying to sell Whispered Secrets or the like in the Bazaar.
Drinking laudanum is bad for your health, and your Wounds quality will increase a bit one change point), but you can reduce that with F.F. Gebrandt's Tincture of Vigour. I imagine that Gebrandt is an extremely wealthy lady. Alternatively, you can just rest at your Lodgings if your Wounds quality is 3 or higher.
Once you become a Person of Some Importance (PoSI), as with the Tincture of Vigour and Ablution Solution, this option will become less viable; unlike the other two, it will also have a nasty side-affect: every time you drink a bottle of the stuff, you'll become slightly more addicted to it, resulting in the Laudanum becoming less effective.
Option #2: We're all mad here.
Go to A state of some confusion. It will discard and replace all of your Opportunities with new cards, so don't do it if you really like your current Opportunities. Almost all of the Opportunities and actions available in confusion will decrease your Nightmares (though some will abuse your base stats a bit, and one or two will increase your Nightmares while giving you something else you want), and you will leave A state of some confusion once your Nightmares drops to zero.
There are two ways to get to A state of some confusion:
- Go to Mrs. Plenty's Carnival, into the House of Mirrors, and then Gaze Into Dream's Mirror, which requires that you have at least one in Nightmares.
- Let your Nightmares quality increase to 8. You'll be taken there immediately.
A state of some confusion doesn't cost you any Echoes, but has a much worse action-efficiency compared to drinking laudanum. (Laudanum seems to do about 4 change points of Nightmares reduction, and actions in a state of some confusion are more like 1-2 change points of Nightmares reduction.) Not all actions there will decrease your Nightmares, but drinking laudanum will waste some of your time with curing your Wounds, so it's a wash; there's some good reasons to just let yourself go mad. Unfortunately, a few of the actions in confusion have a chance to abuse your four main qualities, and there are a few other small-ish drawbacks, so it's not all upside.
Option #2 if you have Memories of Light: we're all mad here, too.
If you have 10 Memories of Light, then you can spent two of them to go to the Mirror-Marches instead of A state of some confusion at the carnival. If you have at least one Memory of Light, then getting to 8 in Nightmares will take you here instead. The Mirror-Marches are much more generous than A state of some confusion; your main qualities won't be abused nearly as much, and actions that remove two or more points of Nightmares are much more common.
Option #3: Psychotherapy.
In your Lodgings, you'll get an option to Find a way to deal with your Nightmares if your Nightmares quality is 4 or higher. Spend a Sudden Insight (possibly gained via Invite a friend to join you in something terribly intellectual from your Lodgings), and you'll lose 5 change points of Nightmares. Your friend will gain one change point of Nightmares and also spend one action, so you should return the favor sooner or later.
Fallen London's economy has changed somewhat, but Menaces continue to be the negative (but still interesting!) consequence of failure. If your only storylets have a high rate of failure, it may be a sign that you've attempted to advance too quickly, and the Menaces are a natural check against speed runs.
With that in mind, Social Actions really are your best insurance against Menaces while throwing everything you've got against storylets. While there are some in-game ways to relieve yourself of some of the pressure of Menaces, they aren't as reliable as Social Actions. This is definitely an intended feature, since it draws more players in to play Fallen London and increases income overall.
Best Answer
Stormy-Eyed is a quality gained after completing the final chain of the What The Thunder Said storylets. Once you have at least 1 of it, you can increase it via storylets earlier in the chain, and from storylets in the Mirror-Marches and Mutton Island. You can also lose it via a storylet in A State of Some Confusion. As you can see, it is a way of repeating the existing What The Thunder Said chain in a new way.