Observed a description of the Dalmatian (7)

I believe the answer is:

spotted

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'observed' is the definition.
(I've seen this before)

I cannot understand how the remainder of the clue works.

(Other definitions for spotted that I've seen before include "As Dick may be" , "Saw; speckled" , "Dappled - saw" , "Seen; saw" , "Caught sight of; dotty" .)

I've seen this clue in The Irish Independent.

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