Hot sauce, like cold, served in fancy boat (7)
I believe the answer is:
tabasco
'hot sauce' is the definition.
(Tabasco is an example)
'like cold served in fancy boat' is the wordplay.
'like' becomes 'as'.
'cold' becomes 'c' (eg on taps).
'served in' is an insertion indicator.
'fancy' is an anagram indicator.
'as'+'c'='asc'
'boat' is an anagram of 'tabo'.
'asc' going inside 'tabo' is 'TABASCO'.
(Other definitions for tabasco that I've seen before include "ASBO Act (anag) - hot stuff!" , "Spicy pepper sauce" , "Chilli sauce" , "A hot spicy sauce" , "Hot peppery sauce" .)