Holds a little fruitcake slice outside (8)
I believe the answer is:
citadels
'holds' is the definition.
(I've seen this in another clue)
I don't understand how the rest of the clue works.
Can you help me to learn more?
(Other definitions for citadels that I've seen before include "Fortresses overlooking cities" , "Forts in cities for protection and refuge" , "Strongholds for shelter during battles" , "Dials etc up for fortresses" , "Keeps" .)