Thinking the world of shadows shrank with halo (7)

I believe the answer is:

adoring

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'thinking the world of shadows' is the definition.
I can't tell whether this defines the answer.

'shrank with halo' is the wordplay.
'shrank with' becomes 'ado' (I am not sure about this - if you are sure you should believe this answer much more).
'halo' becomes 'ring' (synonyms).
'ado'+'ring'='ADORING'

Can you help me to learn more?

(Other definitions for adoring that I've seen before include "Worshipping the loved one" , "Giving great love" , "Devoted" , "Really getting into" , "Extravagantly indulgent" .)

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

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