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]

Moby Thesaurus II by Grady Ward, 1.0:

50 Moby Thesaurus words for "nestle":
   arm, armor, bed, bless, bundle, burrow, champion, cloak,
   compass about, copyright, cover, cradle, croodle, cuddle,
   cuddle up, curl up, cushion, defend, ensure, fence, fend,
   guarantee, guard, harbor, haven, huddle, insure, keep,
   keep from harm, lap, make safe, nuzzle, patent, police, protect,
   put to bed, register, ride shotgun for, safeguard, screen, secure,
   shelter, shield, shroud, snug, snug up, snuggle, snuggle up to,
   tuck in, underwrite