The Collaborative International Dictionary of English v.0.48:

Chisel \Chis"el\, v. t. [imp. & p. p. Chiseled, or Chiselled
   (?); p. pr. & vb. n. Chiseling, or Chiselling.] [Cf. F.
   ciseler.]
   1. To cut, pare, gouge, or engrave with a chisel; as, to
      chisel a block of marble into a statue.
      [1913 Webster]

   2. To cut close, as in a bargain; to cheat. [Slang]
      [1913 Webster] chiseler

WordNet (r) 3.0 (2006):

chiseled
    adj 1: having a clean and distinct outline as if precisely cut
           along the edges; "a finely chiseled nose"; "well-defined
           features" [syn: chiseled, well-defined]