Cut fabric that’s fine grade (8)
I believe the answer is:
lacerate
'cut' is the definition.
(I've seen this before)
'fabric that's fine grade' is the wordplay.
'fabric' becomes 'lace' (lace is a kind of fabric).
'that's' says to put letters next to each other.
'fine grade' becomes 'rate' (synonyms. I am not sure about the 'fine' bit.).
'lace'+'rate'='LACERATE'
Can you help me to learn more?
(Other definitions for lacerate that I've seen before include "Tear, rip (flesh or skin)" , "Cut, leaving jagged edges" , "Deeply cut (flesh, skin)" , "Cut or tear irregularly" , "Clear tea (anag.)" .)