Embarrassed cuddling Jade in bed? (7)
I believe the answer is:
retired
'in bed?' is the definition.
(I've seen this before)
'embarrassed cuddling jade' is the wordplay.
'embarrassed' becomes 'red' (I've seen this before).
'cuddling' is an insertion indicator.
'jade' becomes 'tire' ('tire' can be a synonym of 'jade').
'red' placed around 'tire' is 'RETIRED'.
(Other definitions for retired that I've seen before include "Finished work" , "Gone to bed" , "Withdrawn from active participation" , "out of office?" , "claiming a pension?" .)