Overcook rice occasionally in Australian city (6)

I believe the answer is:

burnie

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'australian city' is the definition.
I don't know anything about this answer so I cannot judge whether it can be defined by this definition.

'overcook rice occasionally' is the wordplay.
'overcook' becomes 'burn' (I've seen this in another clue).
'occasionally' means one should take alternating letters (letters taken at regular intervals or occasions).
The alternating letters of 'rice' are 'ie'.
'burn'+'ie'='BURNIE'

'in' is the link.

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I've seen this clue in the Sydney Morning Herald.

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