When someone gets so lost in the fantasy land created around a situation that they become out of touch with reality, or in other words: getting lost in the sauce.
“The owner of that local business was counting sheep when he thought he would be able to start operating scams on his clients while simultaneouslyincreasing net sales”
Person A:You weren't suposed to count the sheep with her.
Person B:You call sex counting the sheep.
A:I call everything counting the sheep including people, Sheep