Scouts' cabaret jokes involving new method (4,4)

I believe the answer is:
gang show
'scouts' cabaret' is the definition.
I don't know anything about this answer so I cannot judge whether this works.
'jokes involving new method' is the wordplay.
'jokes' becomes 'gags' (gag can mean a joke).
'involving' means one lot of letters goes inside another.
'new' becomes 'n' (common abbreviation eg NT for New Testament).
'method' becomes 'how' (I've seen this in another clue).
'gags' placed around 'n' is 'gangs'.
'gangs'+'how'='GANG SHOW'
Can you help me to learn more?
I've seen this clue in The Independent.
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