Sort of bun otherwise dunked in tea (7)
I believe the answer is:
chelsea
'sort of bun' is the definition.
(I've seen this before)
'otherwise dunked in tea' is the wordplay.
'otherwise' becomes 'else' (synonyms).
'dunked in' indicates putting letters inside.
'tea' becomes 'cha' (cha is a type of tea).
'else' placed into 'cha' is 'CHELSEA'.
(Other definitions for chelsea that I've seen before include "Team in blue" , "upmarket part of London" , "Blue pensioner footballers" , "District of London (with famous pensioners)" , "Type of sugared currant bun" .)