Looker from Sydney exceptional (3)
I believe the answer is:
eye
'looker' is the definition.
'from sydney exceptional' is the wordplay.
'from' says the answer is hidden in the clue.
'EYE' can be found hidden inside 'sydney exceptional'.
(Other definitions for eye that I've seen before include "Watch - middle of cyclone" , "Oculus" , "Twenty four ac emphasises it" , "Dark spot on a potato" , "View" .)