Lively girl cut short character embracing Bill (7)

I believe the answer is:

ladette

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'lively girl' is the definition.
(I've seen this before)

I cannot understand how the rest of the clue works.

(Other definitions for ladette that I've seen before include "Uncouth youth drinking lager in a short skirt?" , "Coarse young woman" , "badly behaved girl" , "Loutish girl" , "Young woman who acts as badly as a man" .)

I've seen this clue in The Times.

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