Answer:
I am a tale in childrens' minds. Though an illusion, I occur every night. I give them a fantasy, I give them a fright. What am I?
What gets bigger the more you take away?
Who is the most foreign visitor you could imagine?
I have a mouth on my head and eat everything.
Lovely and round I shine with pale light grown in the darkness a lady's delight.
I flow from the Homerβs mouth when he sees doughnuts.