The most common and most likely answer to this crossword clue is the 7 letter word DENTATE
I've seen this crossword clue in Financial Times
D
E
N
T
A
T
E
Buddy explains!

The straight part
We know that "with a notched pattern around the edge" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case with a notched pattern around the edge = dentate.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 DENTATE mean?
DENTATE adjective- Having teeth or toothlike projections; serrated, toothed.