My name is ***** ***** I’ve been involved professionally with dogs in the health and behavioral fields for over 18 years. It will be my pleasure to work with you today.
You are correct that this has to be stopped as soon as they start displaying this type of behavior. The quickest way to stop this is with obedience training. The following site is helpful in helping owners train their dog. Be sure and click on the link to the page on obedience at the bottom. and links on subsequent pages leading to detailed instructions.
Training works best if you train at least 30 minutes a day (two 15 minute sessions). I would start making your dog work via the Nothing in life is free program (NILF). It is outlined below.
This lets them know you are the boss and as the boss, you are the only one allowed to give reprimands. Right now it sounds like he feels it is ok to give reprimands. This is one sign of a dominant dog. He reprimands you when you wake him up and do something he doesn't want you to do. It won't be long before he objects to other things.
So start with the obedience training. Paper thin hot dog slices work well as treats. You should have him checked out for a medical cause as well. Often if your dog has some pain, it will trigger them to growl and nip. In addition, hypothyroidism can trigger sudden aggression as well. Read more about medical causes for aggression here:
I do think that this is most likely behavioral so the obedience training should correct the situation.
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Since there have been recalls on certain foods, please check the following site to be sure the food your animals eat is not affected. If it is affected, contact your vet as soon as possible. Have your dog seen if they have any symptoms.