Has girl confused about an imaginary paradise (7-2)
I believe the answer is:
shangri-la
'imaginary paradise' is the definition.
(term for a fantastical paradise on earth)
'has girl confused about an' is the wordplay.
'confused' indicates an anagram.
'about' indicates putting letters inside.
'has'+'girl'='hasgirl'
'hasgirl' with letters rearranged gives 'shgrila'.
'shgrila' going around 'an' is 'SHANGRI-LA'.
(Other definitions for shangri-la that I've seen before include "Hangs liar in idyllic Tibetan country created by James Hilton" , "Paradise on earth, Eden" , "Earthly paradise (from Hilton's "Lost Horizon")" , "Tibetan paradise created by James Hilton in novel 'Lost Horizon'" , "23 of 'Lost Horizon'" .)