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Step 1
Soak wood chips for at least 2 hours. We used applewood chips.
Step 2
Light a chimney of charcoal. Lay the peppers out on the foil lined grill grate. Set up the smoker box with hot coals and a handful of the soaked chips. Replace the charcoal with new hot coals as needed and add new wood chips as the old ones burn away. Smoke the peppers for 3-4 hours, keeping the temperature between 180-200°F.
Step 3
Set up a hot side and a cool side by turning on half the gas elements to low or piling the hot coals off to one side of the grill.
Step 4
Arrange the peppers on the cool side of the grill. Place a handful of soaked wood chips on the charcoal. Replace charcoal with hot coals as needed.
Step 5
For a gas grill wrap the soaked chips in smoker box or a foil packet with slits cut in the top. Place the chips on the grill element to create smoke.
Step 6
Remove the smoked peppers from the grill and arrange them on a cooling rack. Place the cooling rack in the oven on the lowest setting possible. Turn on the convection fan if you have one.
Step 7
Dry the peppers in the oven for 12-24 hours until they are completely dry but still slightly pliable.
Step 8
If you have a food dehydrator you can use that, but it will smell of smoke when you're done.