I had a thought today, can Knowledge is Power be used to put Essence of the Dream into your hand when Dream Diary(lvl 0) is also in your hand? I think so, but I've certainly missed things before.
I looked at the basic rules for bonded and it didn't seem to have anything preventing it. Also the Dream Diary doesn't have any text stating to remove Essence from the game if it isn't in play like most of the bonded cards do.