Public watched, astonished (4-4)
I believe the answer is:
open-eyed
'astonished' is the definition.
(I've seen this before)
'public watched' is the wordplay.
'public' becomes 'open' (similar in meaning).
'watched' becomes 'eyed' (I've seen this before).
'open'+'eyed'='OPEN-EYED'
(Other definitions for open-eyed that I've seen before include "Forming an encrusted mass" , "Astonished; fully aware" , "Surprised - aware" , "Astonished - watchful" .)