Wrestler half hugged funny two-year-old (7)
I believe the answer is:
toddler
'two-year-old' is the definition.
(I've seen this in another clue)
'wrestler half hugged funny' is the wordplay.
'half' indicates taking half.
'hugged' means one lot of letters goes inside another.
'funny' becomes 'odd' (I've seen this in another clue).
'wrestler' halved is 'tler'.
'tler' placed around 'odd' is 'TODDLER'.
(Other definitions for toddler that I've seen before include "Small child" , "Lord Ted (anag)" , "Feeble walker" , "Young walker" , "Little one" .)