Throughout the book there are many references to K'rull being sleep/dreams aspected...
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...the warrior rasped 'It is an Elder God! K'rull himself.'
Also well established is his link/patronage to Kruppe. All that said, consider this snippet...
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'Through Kruppe? Why naught but Kruppe himself! He swears!'
'Not the mule surely?'
'Lass, the mule's capacity for sleep - in no matter what the circumstances - is boundless (snip)'
'Sleep, is it? No doubt, to dream...'
So it appears K'rull is watching through the eyes of a mule. A bad tempered, yet strangely effective mule. sound familiar?
Maybe our mule of shadow is in fact an Elder Mule?
I had wondered on many occasions whether K'rull attention was limited to Genabackis, maybe this shows that it is not?