Covered with torn paper by daughter (7)
I believe the answer is:
wrapped
'covered' is the definition.
(wrapping is a kind of covering)
'with torn paper by daughter' is the wordplay.
'with' becomes 'w' (abbreviation**).
'torn' indicates an anagram.
'by' means one lot of letters go next to another.
'daughter' becomes 'd'.
'paper' with letters rearranged gives 'rappe'.
'w'+'rappe'+'d'='WRAPPED'
(Other definitions for wrapped that I've seen before include "Enclosed, swaddled" , "Enfolded - swathed" , "Like many a present" , "Put in envelope" .)