The Collaborative International Dictionary of English v.0.48:

Nestle \Nes"tle\, v. i. [imp. & p. p. Nestled; p. pr. & vb. n.
   Nestling.] [AS. nestlian.]
   1. To make and occupy a nest; to nest. [Obs.]
      [1913 Webster]

            The kingfisher . . . nestles in hollow banks.
                                                  --L'Estrange.
      [1913 Webster]

   2. To lie close and snug, as a bird in her nest; to cuddle
      up; to settle, as in a nest; to harbor; to take shelter.
      [1913 Webster]

            Their purpose was to fortify in some strong place of
            the wild country, and there nestle till succors
            came.                                 --Bacon.
      [1913 Webster]

            The children were nestled all snug in their beds
            While visions of sugarplums danced in their heads.
                                                  --Clement
                                                  Clarke Moore
                                                  (A Visit From
                                                  St. Nicholas,
                                                  (a poem
                                                  [1823]) also
                                                  called The
                                                  Night Before
                                                  Christmas).
      [PJC]

   3. To move about in one's place, like a bird when shaping the
      interior of her nest or a young bird getting close to the
      parent; as, a child nestles.
      [1913 Webster]

The Collaborative International Dictionary of English v.0.48:

Nestle \Nes"tle\, v. t.
   To house, as in a nest.
   [1913 Webster]

   2. To cherish, as a bird her young.
      [1913 Webster]

WordNet (r) 3.0 (2006):

nestle
    n 1: a close and affectionate (and often prolonged) embrace
         [syn: cuddle, nestle, snuggle]
    v 1: move or arrange oneself in a comfortable and cozy position;
         "We cuddled against each other to keep warm"; "The children
         snuggled into their sleeping bags" [syn: cuddle,
         snuggle, nestle, nest, nuzzle, draw close]
    2: lie in a sheltered position; "The little cottage nestles in
       the forest"
    3: position comfortably; "The baby nestled her head in her
       mother's elbow" [syn: nestle, snuggle]