Unfortunately restarting the device didn't work for me. Like you said, am able to connect through the browser just fine. Have connected via telnet many times in the past. Still getting the timeout:
$ telnet 192.168.18.237
Trying 192.168.18.237...
telnet: connect to address 192.168.18.237: Operation timed out
telnet: Unable to connect to remote host
Edit: forgot the port this time, doh. Working: `telnet {local ip} 8085`