Thin princess given medieval instrument (6)

I believe the answer is:

dilute

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'thin' is the definition.
(similar in meaning)

'princess given medieval instrument' is the wordplay.
'princess' becomes 'di' (Princess Diana).
'given' is a charade indicator (letters next to each other).
'medieval instrument' becomes 'lute' (lute is a kind of instrument. I am not sure about the 'medieval' bit.).
'di'+'lute'='DILUTE'

Can you help me to learn more?

(Other definitions for dilute that I've seen before include "Tone down" , "Add water to another liquid" , "Reduce concentration of a liquid" , "Make (a liquid) thinner" , "Thin out, make less strong" .)

I've seen this clue in The Sun.

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