Panic has flag making a pancake (8)
I believe the answer is:
flapjack
'a pancake' is the definition.
(I know that pancake can be written as flapjack)
'panic has flag' is the wordplay.
'panic' becomes 'flap' (getting in a flap is panicking).
'has' means one lot of letters go next to another.
'flag' becomes 'jack' (jack is a kind of flag).
'flap'+'jack'='FLAPJACK'
'making' acts as a link.
(Other definitions for flapjack that I've seen before include "American pancake" , "Biscuit made with oats, syrup and butter" , "Oaty biscuit; US pancake" , "Chewy cake with oats and syrup" , "Delicacy made with oats and golden syrup" .)