The Collaborative International Dictionary of English v.0.48:

Hug \Hug\, v. i. [imp. & p. p. Hugged; p. pr. & vb. n.
   Hugging.] [Prob. of Scand. origin; cf. Dan. sidde paa huk
   to squat, Sw. huka sig to squat, Icel. h?ka. Cf. Huckster.]
   1. To cower; to crouch; to curl up. [Obs.] --Palsgrave.
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   2. To crowd together; to cuddle. [Obs.] --Shak.
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