SPOILERS TOO
Oh absolutely. Could be a subtle way of saying that she's the reason he stays asleep, so they can live out a life together in this world he created. It seems like he generated a world before and met her first then, and has now generated this world to live out a life together.
Also, Nia is definitely Nyarlathotep (Nia = Nya), a spawn of Azathoth. He walks the earth in the guise of a tall, slim man who uses deception and manipulation to reach his goals.
"He is also the servant of Azathoth, whose fitful, spastic wishes he immediately fulfills. Conversely, he seems to have a low opinion of Azathoth"
All of that lines up with Nia's character, who is the only one who passes as human to the FL and is in a servant position to ML who he seemingly has a bad/reluctant relationship with.
The Dagon (monster turned into the doormat) is from The Shadow over Innsmouth
And the colours in her dream in ch. 2 is from The Color Out of Space
Y’all are hella cultured
So, since ml is 100% the demonic Soultan Azathoth, basically the creator of the universe, the flute part (in which he said her voice is better than a flute) was a reference to the fact that Azathoth is asleep and is kept in that state by other amorphous entities which play the flutes. If the flutes stop, he will wake up and if he wakes up, the whole world will end.
This will happen because he "generates" worlds through his dreams and he does so randomly, that's why he is called "the idiot blind God", because he represents chaos and randomness. The universe after all IS believed to be random and chaotic.