Hi David,
Do you remember asking how to trim Nurbs Surfaces?
CurveClay is very similar, you use a Project SOP to project the Curve onto the Nurbs Surface then you use the Distance parameter of the CurveClay SOP to displace the Nurbs Surface.
First, get a Circle SOP & a Grid SOP, both Nurbs. Next, use a Project SOP to project the circle onto the grid then append a CurveClay to the Project SOP and adjust the Distance Parameter for hours of fun!

If you would like to animate the curve, branch append
* a Transform SOP to the Circle SOP & then pipe the output of the Transform SOP to the third input of the CurveClay. In this setup, you'll use the Transform SOP to control the displacement.
I hope the above helps!
Cheers!
steven
* Middle-Click on the output of the Circle SOP in the network pane or hold down Shift while selecting the Operation in the viewport.