Family sitting round large oven (4)
I believe the answer is:
kiln
'oven' is the definition.
(kiln is a kind of oven)
'family sitting round large' is the wordplay.
'family' becomes 'kin' ('kin' can be a synonym of 'family'**).
'sitting round' is an insertion indicator.
'large' becomes 'l'.
'kin' placed around 'l' is 'KILN'.
(Other definitions for kiln that I've seen before include "Potter's Friend" , "Oven for firing ceramics etc" , "Pottery furnace" , "Large oven, for potters say" , "Furnace for firing bricks" .)