Cryptic crossword clue
One searching smallest room, say, for complaint in the Observer 7

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

I've seen this crossword clue in The Guardian
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The straight part
We know that "complaint in the Observer" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case complaint in the observer = leucoma.
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 LEUCOMA mean?

LEUCOMA noun
  1. An opaque area or scar on the cornea of an eye

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