Badly bombed city, home to fine porcelain (7)
I believe the answer is:
dresden
(Other definitions for dresden that I've seen before include "German city, noted for its porcelain" , "Germany city - reddens (anag)" , "Dr needs to be in the German city" , "'German city, almost totally destroyed by British air raids in 1945 (7)'" , "that was notoriously fired" .)