Add the sugar and bitters to a rocks glass. Add the water and stir until the sugar is dissolved.
Fill the glass with large ice cubes, add the bourbon and gently stir to combine. Garnish with an orange peel.
Use a cocktail smoker, a smoking gun or a smoking tube to fill and envelop the glass with smoke. Let the smoke linger in the covered glass for 30 seconds to 1 minute, adjusting the duration based on your preferred level of smokiness.
Notes
Use a bourbon you like as some of the flavor comes from it.
If you want a sweeter drink, add another teaspoon of granulated sugar.
Use large cubes of ice so it melts slower. Big cubes melt slowly and allow you to enjoy the taste of a spirit before it gets watered down.
If you prefer cherries, garnish with it instead of an orange peel or in addition to.
Adjust the smoking duration based on your preference.