Saw baked dish in the outskirts of Secunderabad (5)
I believe the answer is:
'saw' is the definition.
(I've seen this before)
'baked dish in the outskirts of secunderabad' is the wordplay.
'baked dish' becomes 'pie' (I've seen this before).
'in' indicates putting letters inside.
'the outskirts of' suggests removing the centre (letters on the edges or outskirts are used).
'secunderabad' with its centre taken out is 'sd'.
'pie' going into 'sd' is 'SPIED'.
(Other definitions for spied that I've seen before include "Saw" , "Noticed" , "Caught sight of" , "Spotted" , "Watched secretly" .)