Edward Bear? (5)

I believe the answer is:

teddy

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'edward bear?' is the definition.
'teddy' can be an answer for 'bear?' (I've seen this before). I'm not certain of the 'edward' bit.

'edward bear?' is the wordplay.
'edward' becomes 'ted'.
'bear?' becomes 'dy' (I can't explain this - if you can you should believe this answer much more).
'ted'+'dy'='TEDDY'

Can you help me to learn more?

(Other definitions for teddy that I've seen before include "Cuddly toy" , "plaything" , "Stuffed toy" , "A child's toy bear" , "Stuffed bear" .)

I've seen this clue in the Evening Standard.

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