Spies reported pancake mixture being used to make bread (8)
I believe the answer is:
ciabatta
'bread' is the definition.
(I've seen this before)
'spies reported pancake mixture' is the wordplay.
'spies' becomes 'cia' (Central Intelligence Agency).
'reported pancake mixture' becomes 'batta' (I can't explain this - if you can you should believe this answer much more).
'cia'+'batta'='CIABATTA'
'being used to make' acts as a link.
I am not very happy about this link. Some or all of it may belong to another bit of the clue.
(Other definitions for ciabatta that I've seen before include "Flattish Italian bread" , "Loaf" , "Variety of Italian bread" , "Light flat Italian bread" , "sandwich made with this?" .)