Teller of literary tale about popular hatter (8)

I believe the answer is:

milliner

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'hatter' is the definition.
(I know that hatter can be written as milliner)

'teller of literary tale about popular' is the wordplay.
'teller of literary tale' becomes 'miller' (I can't explain this - if you can you should believe this answer much more).
'about' indicates putting letters inside.
'popular' becomes 'in' ('in' can mean trendy).
'miller' placed around 'in' is 'MILLINER'.

Can you help me to learn more?

(Other definitions for milliner that I've seen before include "Garment maker" , "trader" , "Philip Treacy, say" , "Felt cutter perhaps" , "One making pork-pies" .)

I've seen this clue in The Telegraph.

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