Dog ultimately cocks leg, producing state of panic (8)
I believe the answer is:
tailspin
'state of panic' is the definition.
(I've seen this before)
'dog ultimately cocks leg' is the wordplay.
I cannot quite understand how this works, but
'dog' could be 'tail' (synonyms) and 'tail' is present in the answer.
'leg' could be 'pin' (pin is a kind of leg) and 'pin' is found in the answer.
A single letter 's' remains which might be clued in a way I don't see.
This explanation may well be incorrect...
'producing' is the link.
Can you help me to learn more?
(Other definitions for tailspin that I've seen before include "Chaotic situation" , "awful state" , "confused state" , "Spiral aeroplane dive" , "that could result in crash" .)