SR22 INST STUDENT ENTERS IMC UNUSUAL ATTITUDE AFTER SIMULATED PFD FAILURE.

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YESTERDAY'S STUDENT IS A NON CURRENT PVT PLT WORKING ON REGAINING CURRENCY AFTER NOT FLYING FOR SEVERAL YRS. WE SPENT A LOT OF TIME GETTING VFR SKILLS BACK AND HAVE SPENT A LOT OF TIME WORKING ON IFR SKILLS; SOME THAT WERE NEVER LEARNED. THE STUDENT COMPLETED A PROGRESS CHK WITH THE CHIEF INSTRUCTOR THE DAY BEFORE AND PASSED; BUT ONLY FOR IFR NORMAL OPS. WHILE WE HAVE WORKED ON SOME EMER SITUATIONS; THEY WERE NOT OUR FOCUS. YESTERDAY'S FLT WAS IN AND OUT OF THE CLOUDS FOR MULTIPLE APCHS AS A LARGE WX SYS MOVED THROUGH THE STATE. OUR DEP ARPT WAS VFR WITH A 4000 FT CEILING; ENOUGH ROOM FOR SOME OF MY SOLO STUDENT PLTS TO PLAY IN THE TFC PATTERN; BUT NOT GO ANYWHERE. ON RADAR VECTORS TO FINAL FOR THE ILS; WE WERE OUT OF THE CLOUDS AND I HAD THE STUDENT UNDER THE HOOD. ON AN INTERMEDIATE VECTOR; I DIMMED THE PFD TO SIMULATE A PFD FAILURE. AS THE STUDENT LOOKED DOWN; HE IMMEDIATELY ROLLED US INTO A DIVING L TURN; DESPITE MY HAND GOING JUST AS FAST ON THE STICK TO STOP HIM AND THE OTHER CHOPPING PWR; AND MY STATING FIRMLY 'LET GO OF THE YOKE [STICK].' HE DIDN'T. 'YOU ARE IN AN UNUSUAL ATTITUDE; RECOVER.' HE DIDN'T. I STATED 'MY AIRPLANE' TWICE BEFORE HE FINALLY RELEASED THE CTLS AND I COULD START THE RECOVERY. ON THE DIVE WE HAD ENTERED THE CLOUDS AND ALSO LOST CONSIDERABLE ALT; WITH THE GARMIN TERRAIN AND HONEYWELL TAWS ACTIVATING. GREAT; WITH THE STUDENT'S HELP; I'D JUST GIVEN MYSELF A PARTIAL PANEL UNUSUAL ATTITUDE RECOVERY IN THE CLOUDS. JUST AS WE HAD STARTED THE DIVE; THE CTLR HAD TOLD US SOMETHING. AS WE STARTED CLBING BACK TO OUR ASSIGNED ALT; I UN-DIMMED THE PFD AND ASKED THE CTLR; 'SAY AGAIN; WE WERE RECOVERING FROM AN EQUIP FAILURE.' THE CTLR DIDN'T MENTION OUR HDG OR ALT BUST; AND GAVE US THE FINAL VECTOR CLRED FOR THE APCH; AND CONTACT TWR. WE LANDED; DISCUSSED WHAT HAD HAPPENED AND WHAT THE APPROPRIATE ACTIONS WERE; THEN WENT OUT AND DID ANOTHER APCH; THIS TIME THE STUDENT HAD HIS HANDS OFF OF THE YOKE BEFORE I DIMMED THE PFD AND I WAS READY TO BLOCK HIS GRAB FOR THEM. WE HAD COVERED UNUSUAL ATTITUDE RECOVERIES EARLIER IN THE STUDENT'S TRAINING; BUT WE WILL BE REVISITING THAT TOPIC AGAIN. I'M NOT CERTAIN I COULD HAVE PREVENTED THE DIVE AS THE STUDENT IS MUCH STRONGER THAN ME. I DID SEE IT HAPPENING; BUT JUST COULDN'T MOVE FAST ENOUGH. AFTER THE FLT; THE STUDENT WENT HOME HAPPY; HE FELT LIKE HE'D LEARNED A GREAT LESSON. I WAITED TILL MY KNEES STOPPED KNOCKING; THEN WENT HOME. THAT WAS TOO CLOSE.