The Collaborative International Dictionary of English v.0.48:

Muzzy \Muz"zy\, a. [Cf. F. muse.]
   Absent-minded; dazed; muddled; stupid.
   [1913 Webster]

         The whole company stared at me with a whimsical, muzzy
         look, like men whose senses were a little obfuscated by
         beer rather than wine.                   --W. Irving.
   [1913 Webster]

WordNet (r) 3.0 (2006):

muzzy
    adj 1: indistinct or hazy in outline; "a landscape of blurred
           outlines"; "the trees were just blurry shapes" [syn:
           bleary, blurred, blurry, foggy, fuzzy, hazy,
           muzzy]
    2: confused and vague; used especially of thinking;
       "muddleheaded ideas"; "your addled little brain"; "woolly
       thinking"; "woolly-headed ideas" [syn: addled, befuddled,
       muddled, muzzy, woolly, wooly, woolly-headed,
       wooly-minded]

Moby Thesaurus II by Grady Ward, 1.0:

92 Moby Thesaurus words for "muzzy":
   addlebrained, addled, addleheaded, addlepated, afflicted,
   beclouded, befuddled, bent, blear-witted, blurred, boiled, bombed,
   boozy, breathy, canned, choked, choking, cloudy, cockeyed,
   cockeyed drunk, croaking, crocked, crocko, dizzy, drawling, drawly,
   dysphonic, elevated, fogged, foggy, fried, fuddlebrained, fuddled,
   guttural, half-seas over, harsh, hawking, hazy, high, hoarse,
   illuminated, in a fog, in a muddle, inarticulate, indistinct,
   lisping, lit, lit up, loaded, lubricated, lushy, mispronounced,
   misted, misty, muddled, muddleheaded, muddybrained, nasal, oiled,
   organized, pickled, pie-eyed, pissed, pissy-eyed, plastered,
   polluted, potted, puzzleheaded, quavering, raddled,
   scramblebrained, shaking, shaky, shellacked, skunk-drunk, smashed,
   snuffling, soaked, soused, squiffy, stewed, stifled, stinko,
   strangled, swacked, tanked, thick, throaty, tight, tremulous,
   twangy, velar