Gypsy does this too... she has two different methods though...
1 - put the treat/bone on the sofa and push the blanket with her nose and try to hide it... pretty much unsucessful everytime because we can still see it!
(oh, and if you "see" her doing it then she will have to walk round the room with it for a while till we've "forgotten" she's going to bury it!)
2 - pushes the "imaginary" dirt that is all over our appartment over her dinner/water bowls!