Greek lady taken in by His Excellency (7)
I believe the answer is:
hellene
'greek' is the definition.
('Hellene' can be a synonym of 'greek')
'lady taken in by his excellency' is the wordplay.
'lady' becomes 'ellen' (**).
'taken in by' is an insertion indicator.
'his excellency' becomes 'he'.
'ellen' placed into 'he' is 'HELLENE'.
(Other definitions for hellene that I've seen before include "Greek girl" , "old Greek" .)