Cryptic crossword clue
Old city dons a source of chocolate liqueur 7

The most common and most likely answer to this crossword clue is the 7 letter word CURACAO

I've seen this crossword clue in The Guardian
C
U
R
A
C
A
O


Buddy explains!

The straight part
We know that "liqueur" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case liqueur = curacao.
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 CURACAO mean?

CURACAO noun
  1. A liqueur, made from eau-de-vie, sugar and, as flavor, dried peel of sweet and sour oranges.

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