Figured I enjoy story writing and haven't done it in a while, so lets give it a go. c:
I'll probably add a render later for the cover ^-^
---------------------------
Steve lent back against the oak tree, and scattered his inventory along the grass. He sat forward slightly, leaning over his dog companion and looked down at the loot. "An emerald from a villager. . . rotten flesh from the undead. ." He counted aloud, looking at the flesh. Steve's stomach growled and he looked at the flesh tenderly. One bite couldn't hurt, right? He took a mouthful of it, reluctantly swallowed, and tossed the rest aside. Steve coughed and almost puked, but his stomach was releaved. The dog perked his ears, and looked over to the flesh. "Bear, no." Steve growled, pulling the dog back by the collar. He shook his head, and stood up, collected his valuables and stuffed them into his inventory. He looked up at the lowering sun, shrinking under the mountains in the horizon. Whistling to his friend, Steve bolted through the forest, the wind rushing through his hair. Steve was a few chunks away from his hut - he had to hurry, he didn't want to risk losing his newly found treasures to the dreadful mobs who lurked in the darkness.

Steve ran, pushing forward as the sun lowered below the mountain ahead. He glanced behind him, the moon was almost upon him. He shook his head in frustration, and pushed forward. YALP! Steve skidded to a stop, and spun around him. "Bear?" He called, rushing back towards where he heard his companion's cry. "Bear!?" He called again, waiting for the dog to return. Pit pat! Footsteps echoed behind Steve's back, making him jump slightly. "Who's there!" He demanded, staring into the darkness. "Reveal yourself!" He commanded once more, pulling his sword from his backpack and holding it in front of him.
"But I am Steeevvveee.." A raspy voice whispered, echoing throughout the forest.

"What did you do with my dog?!" Steve cried, standing up and quickly backing up to the closest oak tree.
"I'm not going to hurt him..." The voice hissed, his voice weaving throughout the trees - seemingly coming from nowhere, but at the same time everywhere, "But you on thhheee other hand, that's a whoollleee otheerr story!" Steve held up his sword and shield once more.
"I'm not afraid of you, fiend!" He retorted, swinging his sword around in front of him. Swipe! Steve stepped backwards, falling back onto the oak tree. He opened his eyes, but all he could see was darkness! He let out a yelp and rushed back behind the tree, cowering under his shield.
"Now yoouu'rreee liikkeee meee, Steeevveee!" The voice shouted, and laughter filled his ears. Steve rushed up, grabbed his shield and ran - through the seeming darkness in the direction he felt was home.

The monster's laughter weaved through the trees and tormented Steve more and more. His eyesight slowly came back, and Steve's stumbling turned into a full on sprint. He ran as fast as he could, trying to cover his panting from the monster. He looked around while running, trying to make sense of where he was. The trees were missing their leaves! He screamed, and skid around the corner and into his house, slamming the door behind him.
"Steeevveee. . ?" The monster coed from the darkness. Steve rushed into the bathroom, and looked into the glass. His eyes. . . they were white! He hissed, covering the mirror and stumbled into the kitchen. He opened his food chest, and rummaged through the chest. The world whirled around him, and Steve collapsed next to the chest. . .
~~~
The rooster let out a loud crow and the sun glared through the window into Steve's eyes. He opened them slowly, wiping the sleep out of his eyes. He snapped awake, remembering the events of last night, and looked around the room. The room was a mess, his pots smashed on the wooden floor and his sword sticking through the door. In confusion, Steve sat up. He felt something warm on his legs, and looked down.. rotten flesh? It made no sense.. he stood up and rushed into the bathroom, looking once again into the glass, rubbing his eyes. But they were fine. Wait, Bear? "Bear?" Steve called, walking back into the kitchen. He looked around, and noticed the dog cowering behind the jukebox, quivering in fear.

Steve stood back from the calamity, in confusion. If he hadn't seen that monster in the forest, what had happened? Wait, he thought, could it be? He bent down, picking up the rotten flesh and examining it. Of course, it had all been an illusion, caused by the poisoning affect of the rotten flesh! Steve crinkled his nose at the flesh, tossed it into the fire, and began the long job of cleaning his hut.
---------------------------
Credit to the Minecraft Wikia which supplied me information on Herobrine's activities, along with some of my own added ideas. c: