Way past bedtime, just rinsing out my tea mug. Oh, I just get really comfortable and settled, then place it on my pillow in front of me a couple of inches away. Right before asking my higher self for whatever guidance or dreams I'd like, I just ask the herbs to help bring me whatever in my dreams, then let them do their thing.
At first, I'd 'lose' it during the night, but now it usually winds up safely either on or under my pillow. Occasionally, I'll wake up holding it in my hand. =)