Condiment a little Italian restaurant served up touching lip (7,5)
I believe the answer is:
tartare sauce
'condiment' is the definition.
(I know that tartare sauce is a type of Sauce)
'a little italian restaurant served up touching lip' is the wordplay.
'little italian restaurant' becomes 'trat' (short for trattoria).
'served up' is a reversal indicator.
'touching' becomes 're' (I've seen this in other clues).
'lip' becomes 'sauce' (both can mean insolence or rudeness).
'a'+'trat'='atrat'
'atrat' back-to-front is 'tarta'.
'tarta'+'re'+'sauce'='TARTARE SAUCE'
(Other definitions for tartare sauce that I've seen before include "Dressing for fish" , "Accompaniment to fish" , "dish accompaniment?" .)