While my B takes a while to wake up, she's adorable the whole time. She stretches into that impossibly long, whole body stretch. She yawns, she cuddles a bit if she's in the mood (rarely). Sometimes I'll turn her over on her back and rub her chest and she starts off on a flurry of yoga stretching (reach for the sky!) all over again. Then when she's good and ready, she gets her day moving.
I thought she was simply mirroring my reaction to the morning!
She has never gotten snippy though – but mine is spayed.
I highly recommend the Bob Barker route; and I agree with the general consensus here to go see the vet.
All dogs should understand that aggression is not acceptable.