Under the blankets, hiding evidence of smoking, looking embarrassed (7)
I believe the answer is:
abashed
'embarrassed' is the definition.
('abash' can be a synonym of 'embarrass')
I cannot understand how the rest of the clue works.
Can you help me to learn more?
(Other definitions for abashed that I've seen before include "Embarrassed or disconcerted" , "Feeling uneasy" , "shamed" , "Disturbed" , "Shamefaced" .)