Spread fat on cheese cloth (7)
I believe the answer is:
taffeta
'cloth' is the definition.
(taffeta is a kind of cloth)
'spread fat on cheese' is the wordplay.
'spread' indicates anagramming the letters.
'on' means one lot of letters go next to another.
'cheese' becomes 'feta' (type of cheese).
'fat' is an anagram of 'taf'.
'taf'+'feta'='TAFFETA'
(Other definitions for taffeta that I've seen before include "Thin crisp lustrous silk" , "Shiny silk with a crisp texture" , "Sheeny fabric" , "Glossy silk material" , "fine stuff indeed!" .)