I actually had a similar scenario in my home except the intruder was unarmed, though I did not at first know that. I woke up and found him in my living room while sleeping on the sofa enjoying cool breezes coming through my screen door.
I reached for my hand gun and challenged him as he was heading toward my kitchen with bedroom and wife just beyond that.
I strongly asked him to stop and tell me ‘who are you and why are you here?’
I was prepared to shoot if he had not stopped or had shown any sign of aggression.
He did stop and I ordered him to sit down, still in my living room. He was compliant though obviously disoriented and non aggressive.
With my phone always nearby, I called 911, sat in a different place but near enough to react appropriately to his movements if any.
While we waited he gave me a phone # I called. His wife and police arrived about the same time. They sent him home with his wife who thanked me profusely for not shooting her husband.