I would say the 2 options here are "that", or nothing at all
That's the way that I make my dream come true
That's the way () I make my dream come true (I prefer this option)
If you want to use "how":
That's how I make my dream come true
The omission of that is possible because it does not produce ambiguity in the interpretation of the sentence. The word that has different functions. In this case, I'd say it's a conjunction that joins a subordinate clause to a noun. According to the grammar, the conjunction that can often be left out, especially in an informal style (Michael Swan, 2005).That's the way that I make my dream come true or That's the way () I make my dream come true [...] What I am concerned here is, why "that" can be omitted in the second bolded sentence? Could you tell me why?
I'd say those sentences are still "joined" by the conjunction that, as if it was still there. The omission of a word or phrase necessary for a complete syntactical construction but not for understanding is called ellipsis.If the "that" is omitted, what's relation beween the following two senences? How are they joined? 1. That's the way 2. I make my dream come true