Queen perhaps taking in naked entertainment (7)
I believe the answer is:
cabaret
'entertainment' is the definition.
(cabaret is a kind of entertainment)
'queen perhaps taking in naked' is the wordplay.
'queen perhaps' becomes 'cat' (a female cat is a queen).
'taking in' is an insertion indicator.
'naked' becomes 'bare' (synonyms).
'cat' going around 'bare' is 'CABARET'.
(Other definitions for cabaret that I've seen before include "Nightclub 12ac" , "Variety entertainment" , "Floor show for Arab etc" , "Entertainment at restaurant" , "In nightspot" .)