Crossword Genius

State of bluegrass lounge singer (5)

Ross

I believe the answer is:

kylie

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

'singer' is the definition.
Although both the answer and definition are singular nouns, I can't understand how they can define each other.

'state of bluegrass lounge' is the wordplay.
I cannot quite understand how this works, but
'state' could be 'ky' (US abbreviation for Kentucky) and 'ky' is located in the answer.
'lounge' could be 'lie' (as in to lounge or lie around) and 'lie' is found in the answer.
This accounts for all the letters.
This may be the basis of the clue (or it may be nonsense).

Can you help me to learn more?

(Other definitions for kylie that I've seen before include "Dannii M's older sister" , "-- Minogue, Australian singer" , "Aussie singer" , "returning missile" , "Type of boomerang" .)

I've seen this clue in The Independent.
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