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As one might guess, the term is a portmanteau of the words navigate and gazing.

When you are navigazing, you are paying more attention to the environment around you than to where you are actually going. This state of being is generally useful when you have time to kill or simply enjoy looking at the world around you.
I was navigazing around and I totally wound up in Vegas.
by Doktorfunk June 20, 2006
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