A nut cracker Nellie is holding (6)
I believe the answer is:
kernel
'a nut' is the definition.
(I've seen this before)
'cracker nellie is holding' is the wordplay.
'is holding' indicates the answer is hidden within the clue.
'KERNEL' can be found hidden inside 'cracker nellie'.
(Other definitions for kernel that I've seen before include "Nut centre; sounds like a rank" , "Edible seed of nut" , "Heart of a nut" , "Inner part of a seed or grain" , "Hard centre of nut" .)