Play around with stuff, typing on the computer, messing with the TV,
whatever, until you fall asleep. (You can put off sleep for a few
turns by sipping the coffee, but this only works once.)
You will have a dream about Calliope visiting your game. Wait out her
monologue.
You'll wake up. In a couple of turns, a fly will buzz in.
Pick up the Inform manual, roll it up, wait for the fly to land on
something, then swat it with the manual.
You'll enter a lucid fantasy at least vaguely based on what was on the
TV, where the character you imagine yourself as has also just killed a
fly. To return to reality, read the writing on the thing you used to
kill the fly (the knife (after taking it), the flyswatter or the
newspaper (after unfolding it), depending on the fantasy/TV channel).
To win the game, you can 'make' or 'create' the game idea that appears
in your inventory, or you can just put it inside the computer. :)
Ways to lose the game: Turning off all your apartment's light
sources. Destroying the Inform manual. Turning off the
computer. Falling alseep after dreaming of Calliope. Dropping the new
game idea after you get it.