Grilling by definition means direct heat. Smoking means introducing smoked material into the mix, so I guess you could theoretically smoke something while grilling it over a direct flame, but the general BBQ definition of smoking meat is indirect heat (something is between the flame and the meat) and that the temperature should be low and the cooking slow. Grilling is usually a higher temperature for a much shorter time. Smoking isn't always better, steak is best when grilled or fried at extremely high temperature (600 degrees plus). But for me the tastiest meats will be cooked much slower and at a temperature closer to 220 degrees. In addition to the low temperature you should literally burn chips of wood (hickory, mesquite, cherry, apple, etc.) so that their smokey flavor enters the meat.
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