Cut around new ground (7)

I believe the answer is:

gnashed

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'cut around new ground' is the definition.
'gnashed' can be an answer for 'ground' (as in gnashing teeth). I'm not sure about the 'cut around new' bit.

'cut around new ground' is the wordplay.
'cut' becomes 'gashed' (synonyms).
'around' means one lot of letters goes inside another.
'new ground' becomes 'n' (I am not sure about this - if you are sure you should believe this answer much more).
'gashed' placed around 'n' is 'GNASHED'.

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I've seen this clue in The Telegraph.

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