Found this cryptic clue in the #1 Times quick cryptic book. I got it for Xmas so I could graduate to some more complicated cryptic puzzles than the rubbish you see in the mass market ones though, if this is the quick Times one, I'm dreading the normal one I also got :-).

I have the answer but I don't understand the full process. The clue is:

Herb ducks hugging ungrateful daughter (7).

My (incomplete) process is hidden below in case you want to approach it "clean".

The "ducks hugging" bit ...

... is obviously "starts and end with O".

That leads me to the solution ...

... "OREGANO", the herb.

But I'm not sure of the second path to the answer ...

... how the remainder of the clue, "ungrateful daughter" gives the internal letters "REGAN". Those letters are in "ungrateful" but that would leave "UTFUL" and I'm not sure how to get rid of those with "daughter".

Any assistance appreciated (and hoping this question is suitable for the site).