Hi. I would firstly substitute the midnight feed with a dream feed. You can give it to him at 10-11 pm before going to bed yourself and then not giving the midnight feed. Then, if it works, after few days I would try to take out the 2.30 bottle. I think he should go without any feed until morning with a df at this age if he eats properly during the day. If I understand correctly, you still have to resettle him after the feed both at 12 and at 2.30 for one hour. In this case, I think the bottle is not what he really needs but it's just an habit. So, I'm not sure if it really makes sense to dilute the milk, it would keep the problem I guess... But it could be worth a shot.