Offering squash with ice, but not cold (7)
I believe the answer is:
pressie
'offering' is the definition.
(a present is an offering)
'squash with ice but not cold' is the wordplay.
'squash' becomes 'press' (I've seen this in other clues).
'with' means one lot of letters go next to another.
'but not' indicates named letters should be taken away.
'cold' becomes 'C' (abbreviation, eg on taps).
'ice' with 'c' taken away is 'ie'.
'press'+'ie'='PRESSIE'
(Other definitions for pressie that I've seen before include "Something freely given" , "Informally, offering" , "Gift (colloq.)" .)