Sentence:  The Brookers never called these biscuits biscuits. They always referred to them reverently as ‘cream crackers'—‘Have another cream cracker, Mr Reilly. You'll like a cream cracker with your cheese'—thus <WSD>glozing</WSD> over the fact that there was only cheese for supper. 
Meaning of the word marked with <WSD> tags:  To smooth over; to palliate by specious explanation.