The Collaborative International Dictionary of English v.0.48:

Inlay \In*lay"\, v. t. [imp. & p. p. Inlaied; p. pr. & vb. n.
   Inlaying.]
   To lay within; hence, to insert, as pieces of pearl, ivory,
   mother-of-pearl, choice woods, or the like, in a groundwork
   of some other material; to form an ornamental surface; to
   diversify or adorn with insertions.
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         Look, how the floor of heaven
         Is thick inlaid with patines of bright gold. --Shak.
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         But these things are . . . borrowed by the monks to
         inlay their story.                       --Milton.
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