Smoke first and then dry is what I do. Many people do both at the same time though. They will smoke at a fairly low heat for 24hours + and that will dry them. I prefer to do everything as cool as possible because this will retain the flavor and color of the peppers best. I cold smoke for 4-6 hours or however long I feel like at the time actually then toss into a dehydrator at the lowest heat setting until dry.