It might be used to cover cake in picnic in garden (5)
I believe the answer is:
icing
'it might be used to cover cake' is the definition.
The definition suggests a singular noun which matches the answer.
'in picnic in garden' is the wordplay.
'in' says the answer is hidden in the clue.
'ICING' is hidden in the letters of 'picnic in garden'.
Can you help me to learn more?
(Other definitions for icing that I've seen before include "Concreted sugar" , "East European nation" , "Food coating" , "effect of cold weather" , "Freezing" .)