Sleeping beside thee,
No need of pillow;
Thine arm and mine arm,
Pillows are they.
This being alternative to the method sometimes adopted of literal unrhythmical translation, I hope occasional licence will be condoned. This is what I might have written:
Lord-and-master (or Thee)-with-sleep-when,
Pillow-indeed-no-go-;
Mutual-different-of
Honourable-Arm-Pillow.