I’m doubtful about that, Bharat. If cut is the insertion indicator to place O inside food, then it can’t also indicate the shortening of the word for food.
The most likely construction does seem to be a word for food with O inserted giving a leader (though it could be the other way round). Given the number of options for both food and leader it’s not easy. This is where crossing letters come in handy!
The definition is leader (slang, originally US, as a few of these clues seem to be). It’s a three-letter synonym for love, darling, plus a truncated word for food, as in a cut of meat