Middle of exam, and confused over capital of Uruguay - an exotic place (6)
I believe the answer is:
xanadu
'an exotic place' is the definition.
'xanadu' can be an answer for 'place' (I have seen 'Idyllic place ' mean 'xanadu' so perhaps 'place' could also mean 'xanadu'). I'm not sure about the 'an exotic' bit.
'middle of exam and confused over capital of uruguay' is the wordplay.
'middle of' indicates the central letters.
'confused' indicates an anagram.
'over' is a charade indicator (letters next to each other).
'capital of' indicates taking the first letters.
The middle letters of 'exam' are 'xa'.
The initial letter of 'uruguay' is 'u'.
'and' with letters rearranged gives 'nad'.
'xa'+'nad'+'u'='XANADU'
Can you help me to learn more?
(Other definitions for xanadu that I've seen before include "Wonderful place of Coleridge's Kubla Khan" , "Where Kublai Khan built his pleasure-dome" , "Idyllic place" , "Where Coleridge's Kubla Khan lived" , "old Chinese summer capital" .)