Sweet creature seen around Arkansas (7)
I believe the answer is:
caramel
'sweet' is the definition.
(I know that caramel is a type of sweet)
'creature seen around arkansas' is the wordplay.
'creature' becomes 'camel' (type of animal).
'seen around' indicates putting letters inside.
'arkansas' becomes 'ar' (I've seen this in other clues).
'camel' placed around 'ar' is 'CARAMEL'.
(Other definitions for caramel that I've seen before include "Soft toffee" , "Shade" , "Burnt sugar used for flavouring" , "Chewy sweet - burnt sugar" , "Chew candy" .)