Obvious mistake with dazzling light starting off panic (7,5)

'obvious mistake' is the definition.
'glaring error' can be an answer for 'mistake' (I have seen 'Conspicuous mistake' mean 'glaring error' so perhaps 'mistake' could also mean 'glaring error'). I am unsure of the 'obvious' bit.

'with dazzling light starting off panic' is the wordplay.
'with dazzling light' becomes 'glaring' (I can't explain this - if you can you should give a lot more credence to this answer).
'starting off' means to remove the first letter (the starting letter is removed).
'panic' becomes 'terror' ('terror' can be a synonym of 'panic').
'terror' with its initial letter taken off is 'error'.
'glaring'+'error'='GLARING ERROR'

Can you help me to learn more?