Exaggerate the way this is too much of a good thing (8)
I believe the answer is:
overdose
'a good thing' is the definition.
The definition and answer are not the same part of speech.
'exaggerate the way this is too much of' is the wordplay.
'exaggerate' becomes 'overdo' (synonyms).
'the way' becomes 's' (Compass direction - South).
'this is too much of' becomes 'e' (I can't explain this - if you can you should give a lot more credence to this answer).
'overdo'+'s'+'e'='OVERDOSE'
Can you help me to learn more?
(Other definitions for overdose that I've seen before include "Take too much of a drug" , "Excessive intake as of medicine" , "Excessive measure of pills" , "Dangerous drug intake" , "Excessive intake of medication" .)