Hi there.
I don't think you need to worry about hunger. I mean, yes he may be hungry but he's not going to waste away, and hunger passes. It's possible to be habitually hungry - if you set an alarm for 3am and got up to have a sandwich, after a couple of nights you'd probably start to wake up hungry. So I would just push through and not worry about it. He'll make up the calories the next day.
I think you're doing the right thing. Personally I wouldn't feed at all at this point. If he wakes 40 mins later, settle him again. At this age it can be confusing if you will sometimes feed him but not at other times - after all, he doesn't understand your rationale.
FWIW it is possible to just keep one NF. I nursed my daughter at night until 18 months, because with a 5am feed she would sleep until 7am, but without it we would be up for the day at 5am. So if it works for you, you could keep one feed but YOU decide the time. So you could do a 10.30pm dream feed, or an early morning feed.
The other thing with my daughter I found I had to put her in her cot (at night and for naps) totally awake. Not 'drowsy' (eyes heavy, head on shoulder) but absolutely awake. The 'drowsy' thing was a prop for us, and she would wake up and not know how to get back to that state by herself.