Woolly middle in peppers we ate roasted (7)
I believe the answer is:
sweater
'woolly' is the definition.
(type of wool garment)
'middle in peppers we ate roasted' is the wordplay.
'middle in' indicates a hidden word (the answer is somewhere in the middle of the clue).
'SWEATER' can be found hidden inside 'peppers we ate roasted'.
(Other definitions for sweater that I've seen before include "Warm garment" , "Long-sleeved pullover" , "Guernsey" , "A present from Mum!" , "Heavy jersey" .)