Small computer secretary has observed outside (7)
I believe the answer is:
notepad
'small computer' is the definition.
'notepad' can be an answer for 'computer' (I've seen this before). I'm unsure of the 'small' bit.
'secretary has observed outside' is the wordplay.
I cannot quite understand how this works, but
'secretary' could be 'pa' (abbreviation for personal assistant) and 'pa' is found within the answer.
'observed' could be 'noted' ('note' can be a synonym of 'observe') and 'noted' is found in the leftover letters.
No letters remain.
This explanation may well be incorrect...
Can you help me to learn more?
(Other definitions for notepad that I've seen before include "Item to write on" , "On which one writes" , "PC" , "Jotter; pocket computer" , "type of computer" .)