The Collaborative International Dictionary of English v.0.48:

Panel \Pan"el\, v. t. [imp. & p. p. Paneledor Panelled; p.
   pr. & vb. n. Paneling or Panelling.]
   To form in or with panels; as, to panel a wainscot.
   [1913 Webster]

   Paneled back (Arch.), the paneled work covering the window
      back. See Window back.
      [1913 Webster]

The Collaborative International Dictionary of English v.0.48:

paneled \paneled\ adj.
   Decorated with panels or wainscoting; -- used of walls; as, a
   paneled family room.

   Syn: wainscoted.
        [WordNet 1.5]