Spirit with punch seen around delta city (4,5)

I believe the answer is:

wood nymph

I'm a little stuck... Click here to teach me more about this clue!

'spirit' is the definition.
The answer and definition can be both people as well as being singular nouns.
Perhaps there's a link between them I don't understand?

'with punch seen around delta city' is the wordplay.
'with' becomes 'w' (abbreviation).
'punch' becomes 'oomph' (I've seen this in another clue).
'seen around' indicates putting letters inside.
'delta' becomes 'd' (phonetic alphabet: alpha, bravo, charlie etc.).
'city' becomes 'NY' (short for New York).
'd'+'ny'='dny'
'oomph' enclosing 'dny' is 'oodnymph'.
'w'+'oodnymph'='WOOD-NYMPH'

Can you help me to learn more?

(Other definitions for wood nymph that I've seen before include "Dryad" , "Tree sprite" .)

I've seen this clue in The Independent.

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