Nears in new setting and not so nutty (5)
I believe the answer is:
saner
'not so nutty' is the definition.
(I've seen this in another clue)
'nears in new setting' is the wordplay.
'nears' can be anagrammed to 'SANER'.
However, I am not clear how the anagram is indicated.
'and' acts as a link.
Can you help me to learn more?
(Other definitions for saner that I've seen before include "less as hatter?" , "Less mad" .)