Hermit cites a problem, catching cold (7)
I believe the answer is:
ascetic
'hermit' is the definition.
(I've seen this before)
'cites a problem catching cold' is the wordplay.
'problem' indicates an anagram.
'catching' indicates putting letters inside.
'cold' becomes 'C' (abbreviation, eg on taps).
'cites'+'a'='citesa'
'citesa' is an anagram of 'asetic'.
'asetic' going around 'c' is 'ASCETIC'.
(Other definitions for ascetic that I've seen before include "Severely disciplined" , "One abstaining from worldly comforts" , "Frugal" , "he never imbibes" , "One living strict life" .)