The easiest route to no rest walk-through is a rogue and a stealth abuse.
Ceromorphosis advancement happens not only due to rest but also you must use illithid power options in the dialogue. If you don't use the tadpole, you won't have dreams no matter how much you rest. The ring has nothing to do with it.
Yes, my very first playthrough of the EA, I avoided using the illithid powers since they are evil and I was playing a good character, and I had no dreams at all.
I haven't tried a Paladin yet, but does using the illithid powers break the paladin oath?