Watch character cry out loud? (7)
I believe the answer is:
eyeball
'watch' is the definition.
(I've seen this before)
'character cry out loud?' is the wordplay.
'character' becomes 'i'.
'cry' shows a homophone (sound like) (cried aloud).
'out loud?' becomes 'ball' (I am not sure about this - if you are sure you should believe this answer much more).
'i' sounds like 'eye'.
'eye'+'ball'='EYEBALL'
(Other definitions for eyeball that I've seen before include "Stare at closely (colloq.)" , "Look confrontationally" , "Observe closely" , "something in orbit" , "It was cut in Un Chien Andalou" .)