Lyric discussion by RadishWhiteIcicle 

Cover art for Candy Coated Dream lyrics by Neutral Milk Hotel

Haha. I think it's "EYES of green", but I guess he could be talking about some Incredible Hulk type figure.

Anyway, I think the song is about the illusion of happiness, or a child's idea of it, particularly one coming from a bad situation. Maybe referencing a child who grows up in a violent or tumultuous household, their fantasies and dreams of escape, possibly through death on occasion, but never being able to make that decision, ending up just living a very internal and isolated life. Perhaps someone who is stuck in childlike state in adulthood, while the world and all its problems continues on around them.