Fire in Dresden thus extinguished (7)
I believe the answer is:
enthuse
'fire' is the definition.
(I've seen this before)
'in dresden thus extinguished' is the wordplay.
'in' says the answer is hidden in the clue.
'ENTHUSE' is hidden in the letters of 'dresden thus extinguished'.
(Other definitions for enthuse that I've seen before include "Show great interest" , "Get passionate" , "Show lively interest and keenness" , "Seem keen" , "Inspire with keenness" .)