Alright, think I'm being thick or possibly my brain has melted in the sunshine we've had today - I know the word for the German soldier you refer to, but can't figure where to go with a homophone. Doesn't help that I don't really follow the parsing of the clue at all, despite knowing the letter that is subbed...
(I figured it was removed from a word to create a common single letter used in wordplay, but not anymore if the word is to be used for a homophone)
Any bonus help appreciated (...)