The Collaborative International Dictionary of English v.0.48:

Cuddle \Cud"dle\ (k[u^]d"d'l), v. i. [imp. & p. p. Cuddled
   (-d'ld); p. pr. & vb. n. Cuddling (-dl[i^]ng).] [Prob. for
   couthle, fr. couth known; cf. OE. ku[thorn][thorn]en to
   cuddle, or cu[eth]lechen to make friends with. SeeCouth,
   Uncouth, Can.]
   To lie close or snug; to crouch; to nestle.
   [1913 Webster]

         She cuddles low beneath the brake;
         Nor would she stay, nor dares she fly.   --Prior.
   [1913 Webster]