City street bathed in sunshine? (7)
I believe the answer is:
chester
'city' is the definition.
(Chester is an example)
'street bathed in sunshine?' is the wordplay.
'street' becomes 'st' (abbreviation).
'bathed in' means one lot of letters goes inside another (I've seen this in other clues).
'sunshine?' becomes 'cheer' (I can't justify this - if you can you should give a lot more credence to this answer).
'st' inserted into 'cheer' is 'CHESTER'.
Can you help me to learn more?
(Other definitions for chester that I've seen before include "County town of northwest England" , "Walled county town" , "County town on the river Dee" , "County town south of Liverpool" , "historic city" .)