This is tricky (Edit: And so tricky that this answer -six upvotes- is wrong. )
WARNING: This answer is wrong. Please don't upvote (or accept!) it. I've decided against deleting it because it still might be helpful.
The issue is this: the traditional-elementrary $\epsilon,\delta$ definition of the limit of a function of a real variable around $x=a$ involves a "deleted neighbourhood" $ 0 < | x − a | < \delta$, i.e., a punctured open interval: we must find some $\delta$ such that the function evaluated inside that neighbourhood falls near the limit. The question is: do we require that the function is defined in all that (real) interval? Actually we don't (that was my mistake). (If that were the case, then a function defined only on the rationals would not have any limits.) All that we require is the condition is fullfiled for all points of the domain that are inside that neighbourhood. (Actually, if the function is not defined in some deleted neighbourhood, we need to assert at least that the $x=a$ is a limit point of the domain. Without this, $\lim_{x\to 0} \sqrt{x-1}=3$ would be vacuously true)
(WRONG answer begins)
First, notice that the function is defined for all reals except for $x=0$, and for the points where the denominator is zero: $$\sin(1/x)=0 \iff 1/x= k\pi \iff x = \frac{1}{k\pi}$$
for any integer $k$.
Outside these prohibited points, the function equals $1$.
Now, as you correctly guessed, that the function is not defined at $x=0$ does not matter for computing the limit.
But what matters is that the other prohibited points get arbitrarily close to $x=0$, hence you cannot find any neighborhood around $x=0$ where the funcion is defined.
Then, the limit does not exist. (WRONG)
(The graph of this function would consist of an horizontal line ($y=1$) with "holes" at $x=0$, and $x=1/k\pi$ . These holes get more and more concentrated around $x=0$... You cannot trust a computer generated graph for this kind of function.)