The only 達磨 I'm familiar with is daruma dolls, however I've seen/heard this used in a descriptive sense in anime and novels.
I can recall seeing a character using it in a novel for example, I don't remember the exact Japanese but she was scolding her colleague in a restaurant saying "hurry up and finish the dishes you hairy daruma!" (Her colleague has wild hair and a funny looking goatee.) Or in another book where the author wrote "筋肉達磨になった男" in reference to a man who had become stupidly muscular.
So what sort of meaning is it supposed to take on in contexts like that? Is there some metaphorical meaning?