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The oven technique (375-400°) results in a toast and shouldn't be smoky. If you are going for a char, you'll need an open flame and it will be smoky. I have torch charred chips, but you have to pick out the bigger chips; the little ones burn up. You do want dried/cured wood, not fresh/green...
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You could make an extract or tinture out of the oak chips and add it in a bit at a time. When using oak chips in winemaking the chips are generally given a rinse with water first before making the extract. One thing you get with a barrel is the slow introduction of oxygen depending on the fill. The surface...