Crossword Genius

Woody's laughing face accepting oily mixture (6)

Ross

I believe the answer is:

xyloid

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'woody's' is the definition.
(I've seen this before)

'laughing face accepting oily mixture' is the wordplay.
'laughing face' becomes 'xd' (I can't justify this - if you can you should believe this answer much more).
'accepting' means one lot of letters goes inside another.
'mixture' indicates anagramming the letters.
'oily' with letters rearranged gives 'yloi'.
'xd' enclosing 'yloi' is 'XYLOID'.

Can you help me to learn more?

(Another definition for xyloid that I've seen is " Woody".)

I've seen this clue in The Independent.
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