Prince holding coffee in dish (7)
I believe the answer is:
platter
'dish' is the definition.
(platter is a kind of dish)
'prince holding coffee' is the wordplay.
'prince' becomes 'pr'.
'holding' means one lot of letters goes inside another.
'coffee' becomes 'latte' (type of coffee drink).
'pr' enclosing 'latte' is 'PLATTER'.
'in' acts as a link.
(Other definitions for platter that I've seen before include "Shallow serving dish" , "Charger" , "Large flat plate" , "pop record" , "main course" .)