Funny how solid fuel enclosed little microphone (7)

I believe the answer is:

comical

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'funny' is the definition.
(I know that funny can be written as comical)

'solid fuel enclosed little microphone' is the wordplay.
'solid fuel' becomes 'coal' (I've seen this before).
'enclosed' is an insertion indicator.
'little microphone' becomes 'mic' (I am not sure about the 'little' bit.).
'coal' going around 'mic' is 'COMICAL'.

'how' is the link.

Can you help me to learn more?

(Other definitions for comical that I've seen before include "'Amusing, funny (7)'" , "Humorous" , "Causing laughter" , "Witty" , "Amusing or droll" .)

I've seen this clue in the Sydney Morning Herald.

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