City with an out-of-the-way blessing (6)
I believe the answer is:
boston
'city' is the definition.
(Boston is an example)
'with an out-of-the-way blessing' is the wordplay.
'with' indicates putting letters inside.
'an out of' indicates anagramming the letters.
'the' becomes 't' (the is pronounced as a 't' sound in some dialects).
'way' becomes 's' (Compass direction - South).
'blessing' becomes 'boon' (synonyms).
't'+'s'='ts'
'ts' is an anagram of 'st'.
'st' placed within 'boon' is 'BOSTON'.
(Other definitions for boston that I've seen before include "Card game; Lincolnshire town" , "type of terrier's found" , "Capital of Massachusetts" , "Mass housing this" , "American city that once had a famous Tea Party" .)