Erotic dancing by English clique (7)
I believe the answer is:
coterie
'clique' is the definition.
(I know that clique can be written as coterie)
'erotic dancing by english' is the wordplay.
'dancing' indicates an anagram.
'by' is a charade indicator (letters next to each other).
'english' becomes 'e' (abbreviation).
'erotic' is an anagram of 'coteri'.
'coteri'+'e'='COTERIE'
(Other definitions for coterie that I've seen before include "Small exclusive circle with a common purpose" , "Exclusive circle of people, clique" , "Exclusive group with shared interests" , "Small exclusive group of friends" , "Exclusive circle of people with common purpose" .)