You and I picked up the Queen's jug (4)
I believe the answer is:
ewer
'jug' is the definition.
(thesaurus)
'you and i picked up the queen's' is the wordplay.
'you and i' becomes 'we' (**).
'picked up' is a reversal indicator.
'the queen' becomes 'er' (Elizabeth Regina).
'we' in reverse letter order is 'ew'.
'ew'+'er'='EWER'
(Other definitions for ewer that I've seen before include "Big jug" , "Large water jug" , "from which liquid may be poured" , "Open vessel with handle and spout" , "A wide-mouthed water-jug" .)