Crossword Genius

Settled how nun is dressed by Edward (9)

Ross

I believe the answer is:

inhabited

I'm a little stuck... Click here to teach me more about this clue!

'settled' is the definition.
(similar in meaning)

'nun is dressed by edward' is the wordplay.
I cannot really understand how this works, but
'dressed' could be 'habited' (habiting is a kind of dressing) and 'habited' is located in the answer.
The remaining letters 'in' is a valid word which might be clued in a way I don't understand.
This may be the basis of the clue (or it may be nonsense).

'how' is the link.

Can you help me to learn more?

(Another definition for inhabited that I've seen is " Dwelled in".)

I've seen this clue in The Guardian.
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