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From The Collaborative International Dictionary of English v.0.48:
Muddle \Mud"dle\, v. t. [imp. & p. p. Muddled; p. pr. & vb. n. Muddling.] [From Mud.] 1. To make turbid, or muddy, as water. [Obs.] [1913 Webster] He did ill to muddle the water. --L'Estrange. [1913 Webster] 2. To cloud or stupefy; to render stupid with liquor; to intoxicate partially. [1913 Webster] Epicurus seems to have had brains so muddled and confounded, that he scarce ever kept in the right way. --Bentley. [1913 Webster] Often drunk, always muddled. --Arbuthnot. [1913 Webster] 3. To waste or misuse, as one does who is stupid or intoxicated. [R.] [1913 Webster] They muddle it [money] away without method or object, and without having anything to show for it. --Hazlitt. [1913 Webster] 4. To mix confusedly; to confuse; to make a mess of; as, to muddle matters; also, to perplex; to mystify. --F. W. Newman. [1913 Webster]