Here’s the most famous (infamous?) scene from K. Gordon Murray’s English dub of the low-budget live-action Mexican classic Santa Claus vs Satan.
In this scene (4:24), which has been giving kids nightmares for years, Lupita’s dreams are interrupted by the Devil. Santa is able to peep the action from his cloud in outer space thanks to the dream-scope, created by Merlin the Magician.
Here’s the full movie: