verb (used without object), fantasized, fantasizing.
to conceive fanciful or extravagant notions, ideas, suppositions, or the like (often followed by about ): to fantasize about the ideal job.
verb (used with object), fantasized, fantasizing.
to create in one's fancy, daydreams, or the like; imagine: to fantasize a trip through space.
Also, phantasize.
Also, especially British, fantasise.

1925–30; fantas(y) + -ize

fantasizer, noun Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2014.
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World English Dictionary
fantasize or fantasise (ˈfæntəˌsaɪz)
vb (when tr, takes a clause as object)
1.  to conceive extravagant or whimsical ideas, images, etc
2.  (intr) to conceive pleasant or satisfying mental images
fantasise or fantasise

Collins English Dictionary - Complete & Unabridged 10th Edition
2009 © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009
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Word Origin & History

1926, from fantasy + -ize. Related: Fantasized; fantasizing.
Online Etymology Dictionary, © 2010 Douglas Harper
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Example sentences
Good behavior is a limitation one puts on oneself, not the road to automatic
  victory people seem to fantasize it will be.
It makes for a great photo and many people fantasize about staying in an over
  water bungalow.
All fantasize about the deaths of those who have wronged them.
It can be pleasurable to fantasize such scenes in vivid detail.
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