Cutting bone, crack around it (7)
I believe the answer is:
gashing
'cutting' is the definition.
(gashing is a kind of cutting)
'bone crack around it' is the wordplay.
'bone' becomes 'shin' (shin is a kind of bone).
'crack' becomes 'gag' (both can mean a joke).
'around it' is an insertion indicator.
'shin' put within 'gag' is 'GASHING'.
(Another definition for gashing that I've seen is " Cutting".)
I've seen this clue in The Times.
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