Sentence:  He made us laugh till we cried, and, not altogether displeased at the effect, undersized and <WSD>bearded</WSD> to the waist like a gnome, he would tiptoe amongst us and say, 'It's all very well for you beggars to laugh, but my immortal soul was shrivelled down to the size of a parched pea after a week of that work.' 
Meaning of the word marked with <WSD> tags:  Having a beard; involving a beard.