I know how it's like to deal with a difficult boss. I had this boss who kept pushing me and reminding me of dealines... like WTF I'm stressed out about my deadlines already. I don't need anyone reminding me about it and making it worse.
I think the best way to deal with it is to find a creative way to get work done and stay out of their hair as much as possible... or start a business. That's what I did and that helped me a lot. At least I was able to preserve my sanity.
Your situation sounds a lot like mine. Good advice. I try to avoid the "boss" as much as possible and concentrate on work..