Dusty Springfield, nice choice Dromed, Welcome back by the way. However I'll see your nothern soul/60s pop flavoured entry and raise you one: Sharon Tandy. Just got her recently issued compilation and everthing on it pretty much counts as a cover as she didn't generally write her own stuff. Every track is an absolute gem but I'll only include a few that were covered by other artists:
Sharon Tandy:
Our Day will come (Stax reworking of a motown standard)
World (Bee Gees, when they still wrote pop, before they turned Disco)
Things Get Better (Eddy Floyd)
Stay With Me (Lorraine Ellison)
Can add a few more covers? Ok this is really obvious but hey, I like it and I like the original too and its not a deliberately "ironic" indie cover:
Sonic Youth - Superstar (The Carpenters)
And if you can like a cover without having heard the original, I'd like to add:
Smashing Pumpkins - Clones (Alice Cooper)
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