Princess embraced by Midas (3)
I believe the answer is:
ida
'princess' is the definition.
(Princess Ida is a Gilbert and Sullivan opera)
'embraced by midas' is the wordplay.
'embraced by' says the answer is hidden in the clue (surrounding letters embrace the answer).
'IDA' is hidden within 'midas'.
(Other definitions for ida that I've seen before include "noted princess" , "princess on stage" , "Greek mount - Gilbertian princess" , "The girl for Dai" , "Princess in a Gilbert and Sullivan comic opera" .)