Start by soaking your wood chips in water for about 30 minutes to ensure steady, flavorful smoke during grilling.
While the wood chips soak, slice each jalapeño in half lengthwise and carefully remove all seeds and membranes to control the heat. Set the peppers aside.
In a small bowl, mix together the softened cream cheese, shredded cheddar (if using), smoked paprika, lemon juice, and a pinch of salt and pepper until the mixture is smooth and well combined.
Use a spoon or a piping bag to generously stuff each jalapeño half with the cheesy mixture, pressing gently to fill every nook and cranny.
Wrap each stuffed jalapeño with a half strip of bacon, securing with toothpicks if necessary to prevent unraveling during grilling.
Preheat your grill to medium-high heat, around 200°C (390°F), and place the soaked wood chips directly onto the hot coals or in a smoker box to produce smoke.
Arrange the bacon-wrapped jalapeños on the indirect heat side of the grill, making sure they’re not directly over flames to prevent burning.
Close the lid and smoke the peppers for about 20-25 minutes, turning occasionally with tongs, until the bacon is crispy and golden, and the peppers blister and char slightly.
Check that the bacon is crispy and the peppers are blistered but not burned; the filling should be bubbling and gooey inside.
Remove the poppers from the grill and let them rest for about 5 minutes—this helps the filling set and makes them easier to handle.
Serve the smoked jalapeño poppers warm, garnished with chopped cilantro or a squeeze of lime if desired, and enjoy the smoky, cheesy, spicy bites.