Green’s Dictionary of Slang

(Aus.) a brothel.

1983		R. Aven-Bray Ridgey-Didge Oz Jack Lang 9: The room and roses are red in this half-pie polly waffle were like what the dog said when he sat on the sandpaper, ‘RUFF.’.
2021		Betoota-isms 190: Knock Shop [...] The brothel [...] See also: The polywaffle.