In a cocktail shaker, add the sugar, 3 dashes of Angostura bitters, and water (if using). Stir to dissolve. Then add the ice cubes (NOT the smoked ice cube) and bourbon (or whiskey), and stir to combine. Alternatively, you shake to combine.
Place your smoked ice cube in an old-fashioned glass and strain the drink into your glass. Garnish with a cherry and the orange peel.
Notes
Sometimes I like to add some club soda, just a dash, to very slightly dilute the intensity of the whisky. It’s totally optional. Also, note that the smoky flavor will get stronger the more the ice slowly melts. It’s fascinating to taste the evolution of the drink as this happens.