The most common and most likely answer to this crossword clue is the 7 letter word FANCIES
I've seen this crossword clue in Independent
F
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More clues leading to the result FANCIES
Buddy explains!

The straight part
We know that "Little cakes" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case little cakes = fancies.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does FANCIES mean?
FANCIES noun- The imagination.
- An image or representation of anything formed in the mind.
- An opinion or notion formed without much reflection.
- A whim.
- Love or amorous attachment.
- The object of inclination or liking.
- Any sport or hobby pursued by a group.
- The enthusiasts of such a pursuit.
- A diamond with a distinctive colour.
- That which pleases or entertains the taste or caprice without much use or value.
- A sort of love song or light impromptu ballad.
- In the game of jacks, a style of play involving additional actions (contrasted with plainsies).
- To appreciate without jealousy or greed.
- Would like
- To be sexually attracted to.
- To imagine, suppose.
- To form a conception of; to portray in the mind.
- To have a fancy for; to like; to be pleased with, particularly on account of external appearance or manners.
- To breed (animals) as a hobby.