The Collaborative International Dictionary of English v.0.48:

Euphemize \Eu"phe*mize\, v. t. & i. [imp. & p. p. Euphemized;
   p. pr. & vb. n. Euphemizing.] [Gr. ? .]
   To express by a euphemism, or in delicate language; to make
   use of euphemistic expressions.
   [1913 Webster]

WordNet (r) 3.0 (2006):

euphemize
    v 1: refer to something with a euphemism [syn: euphemize,
         euphemise]