Member of the clergy looking embarrassed, having lost nerve inside (8)
I believe the answer is:
reverend
'member of the clergy' is the definition.
(reverends are members of the clergy)
'looking embarrassed having lost nerve inside' is the wordplay.
'looking embarrassed' becomes 'red' (someone may go red when embarrassed).
'having lost' indicates an anagram (the original order is lost).
'inside' means one lot of letters goes inside another.
'nerve' anagrammed gives 'veren'.
'red' enclosing 'veren' is 'REVEREND'.
(Other definitions for reverend that I've seen before include "like Father Brown" , "Vicar's title" , "Title of a Protestant clergyman" , "Priest's title" , "Title for clergyman or convent Mother" .)