Graduate in Ascot, mangling hot stuff (7)
I believe the answer is:
tabasco
'hot stuff' is the definition.
(I've seen this in another clue)
'graduate in ascot mangling' is the wordplay.
'graduate' becomes 'BA' (someone with a Bachelor of Arts degree).
'in' indicates putting letters inside.
'mangling' is an anagram indicator (I've seen 'mangled' mean this).
'ascot' is an anagram of 'tasco'.
'ba' inserted within 'tasco' is 'TABASCO'.
(Other definitions for tabasco that I've seen before include "Spicy pepper sauce" , "Red pepper sauce" , "Hot sauce made from capsicums" , "Hot pepper sauce" , "ASBO Act (anag) - hot stuff!" .)