The Collaborative International Dictionary of English v.0.48:

Romance \Ro*mance"\, v. i. [imp. & p. p. Romanced; p. pr. &
   vb. n. Romancing.]
   To write or tell romances; to indulge in extravagant stories.
   [1913 Webster]

         A very brave officer, but apt to romance. --Walpole.
   [1913 Webster]