Craig wreathed in smoke! (5)

I believe the answer is:

cigar

I'm a little stuck... Click here to teach me more about this clue!

'smoke' is the definition.
(smoke can mean a cigar)

'craig wreathed' is the wordplay.
'craig' anagrams to 'CIGAR'.
Though, I'm not clear how this is indicated.

'in' acts as a link.

Can you help me to learn more?

(Other definitions for cigar that I've seen before include "Corona, eg" , "A real smoke!" , "Big roll of tobacco" , "Item kept in a humidor" , "Eg, a cheroot" .)

I've seen this clue in the Evening Standard.

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