"and when, you're warm enough to share your sheets"
When she's ready to start anew relationship with someone else. When she's over it.
"bold enough to make believe that I was only there long enough to disappear"
By this point she's made herself believe the relationship was not as significant as it was. (i.e. I was only there long enough to disappear = makes herself believe it was over as soon as i started almost.
"I'll still, say your name to fall asleep"
Even when she has reached that point, he'll still be in love with her and rely on her memory.
"over and over a cynic saying rosary; a liar in his make believe"
Even though he knows there's no hope (is cynical), he'll lie to himself and make himself believe that there is.
I'm going to take a stab at the second verse
"and when, you're warm enough to share your sheets" When she's ready to start anew relationship with someone else. When she's over it.
"bold enough to make believe that I was only there long enough to disappear" By this point she's made herself believe the relationship was not as significant as it was. (i.e. I was only there long enough to disappear = makes herself believe it was over as soon as i started almost.
"I'll still, say your name to fall asleep" Even when she has reached that point, he'll still be in love with her and rely on her memory.
"over and over a cynic saying rosary; a liar in his make believe" Even though he knows there's no hope (is cynical), he'll lie to himself and make himself believe that there is.
That's my take on it.