Can i create a function inside of void setup() to recall in loop() function
Defining a function within a function is not supported in C or C++. If it were supported in a way consistent with the rest of the language, the inner function would be local to the outer function, just as local variables are, so not callable or even visible from outside the outer function.
Your loop() function (or any other function) could, however, call the setup() function as long as you want to execute setup() again in its entirety. That means that any initialization you perform in setup() would be repeated each time you call it.