Cooler hugs with energy in dance (8)
I believe the answer is:
fandango
'dance' is the definition.
(type of dance)
'cooler hugs with energy' is the wordplay.
'cooler' becomes 'fan' (I've seen this in another clue).
'hugs' means one lot of letters goes inside another.
'with' becomes 'and'.
'energy' becomes 'go' (I've seen this in other clues).
'fan' going around 'and' is 'fandan'.
'fandan'+'go'='FANDANGO'
'in' is the link.
(Other definitions for fandango that I've seen before include "Dance performed with castanets" , "Spanish Steps" , "Old Spanish dance in triple time" , "Spanish dance -- a dong fan (anag)" , "Spanish courtship dance in triple time" .)