Trinket taken from jug — gift we might pick up (10)
I believe the answer is:
knickknack
'trinket' is the definition.
(I've seen this before)
'jug gift we might pick up' is the wordplay.
I cannot quite see how this works, but
'jug' could be 'nick' (I've seen this before) and 'nick' is found in the answer.
'gift' could be 'knack' (knack is a kind of gift) and 'knack' is present in the answer.
A single letter 'k' remains which might be clued in a way I don't see.
This explanation may well be incorrect...
'taken from' acts as a link.
(Other definitions for knickknack that I've seen before include "Cheap ornament" , "Trinket" .)