Teddy's here, alongside the tops of ironed new blankets (2,3)
I believe the answer is:
in bed
'teddy's here' is the definition.
Both the definition and answer are adverbs. Perhaps there's a link between them I don't understand?
'alongside the tops of ironed new blankets' is the wordplay.
'alongside' means one lot of letters go next to another.
'the tops of' indicates taking the first letters.
'blankets' becomes 'bed' (I am not sure about this - if you are sure you should believe this answer much more).
The first letters of 'ironed new' is 'in'.
'in' next to 'bed' is 'IN BED'.
Can you help me to learn more?
(Other definitions for in bed that I've seen before include "10 [AT REST] ," , "Not yet up" , "Retired?" , "Lying, possibly" , "as 15 Down [GARDENERS] may be?" .)