Nurse inhaling bit of pot is occupied (8)
I believe the answer is:
tenanted
'is occupied' is the definition.
(similar in meaning)
'nurse inhaling bit of pot' is the wordplay.
'nurse' becomes 'tend' (tend can mean to nurse or look after).
'inhaling' means one lot of letters goes inside another.
'bit of pot' becomes 'ante' (I am not sure about this - if you are sure you should believe this answer much more).
'tend' placed around 'ante' is 'TENANTED'.
Can you help me to learn more?
(Another definition for tenanted that I've seen is " Occupied for rent".)