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Princess heard joking, then breaking down? (9)

Ross

I believe the answer is:

digesting

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

'breaking down?' is the definition.
The definition and answer can be both related to thinking as well as being present participle verbs.
Maybe you can see an association between them that I don't see?

'princess heard joking' is the wordplay.
I cannot quite understand how this works, but
'princess' could be 'di' (Princess Diana) and 'di' is located in the answer.
This explanation may well be incorrect...

'then' is the link.

Can you help me to learn more?

I've seen this clue in the Sydney Morning Herald.
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