Loaf in living-room (6)
I believe the answer is:
I believe this is a double definition.
'loaf' is the first definition.
'living-room' is the second definition.
(I've seen this before)
'in' is the link.
(Other definitions for lounge that I've seen before include "Simple egg dish" , "Loll, sit about idly" , "Sprawl" , "Comfortable room - relax in it" , "Sit or recline comfortably" .)