The Constitution State ... or, when parsed differently, what you gradually do with this puzzle's circled letters? (11)

I believe the answer is:

connecticut

(Other definitions for connecticut that I've seen before include "Yale U. is in this US state" , "State of NE USA" , "The Nutmeg State" , "One of original thirteen US states" , "one of fifty" .)

I've seen this clue in The New York Times.

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