Mild Liberal embraced by setter? (7)
I believe the answer is:
clement
'mild' is the definition.
('clement' can be similar in meaning to 'mild')
'liberal embraced by setter?' is the wordplay.
'liberal' becomes 'l' (abbreviation).
'embraced by' means one lot of letters goes inside another.
'setter?' becomes 'cement' (something that sets).
'l' placed inside 'cement' is 'CLEMENT'.
(Other definitions for clement that I've seen before include "Patron saint of tanners" , "9, the chef and MP" , "nice" , "not heavy" , "chap" .)