Imagine a little drink out East (5)

I believe the answer is:

dream

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'imagine' is the definition.
(dreaming is a kind of imagining)

'a little drink out east' is the wordplay.
'a little drink' becomes 'dram' (small alcoholic drink. I am not sure about the 'little' bit.).
'out' means one lot of letters goes inside another.
'east' becomes 'e' (abbreviation).
'dram' placed around 'e' is 'DREAM'.

Can you help me to learn more?

(Other definitions for dream that I've seen before include "person to good to be true" , "Night-time fantasy" , "Fantasy; ideal" , "Something imaginary" , "Sleeper's vision" .)

I've seen this clue in the Evening Standard.

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