Soak a good amount of oakwood chips in a bucket full of water for 15 minutes, preheat your oven to 125F (52C) or 170F (77C), and cover your baking pan with parchment paper.
Wash the peppers thoroughly with running water.
Place the washed peppers in your colander to drain excess water.
Once drained, place the peppers on top of two layers of paper towel.
Grab sheets of paper towel and tap the peppers dry.
Once dry, remove the pepper's top with the stem and the seeds.
Slice the peppers into two and remove the white ribs and any remaining seeds.
Slice the de-seeded peppers lengthwise into four to eight pieces.
Load your smoker with the soaked oakwood chips and turn your smoker on.
Place the sliced peppers in your smoker basket and smoke them for at least three hours.
Once done, place the smoked pepper slices on your baking pan.
Place the baking pan with pepper slices in your oven and allow the peppers to dehydrate for five hours at 125F or three hours at 170F. Make sure to check the peppers every hour to avoid burning them. Sometimes, you will already have perfectly dehydrated or dried peppers before reaching the three- or five-hour period.
Once done, place the dehydrated or dried peppers in your spice grinder and pulse to change them into a powdered form.
Transfer your homemade smoked paprika to your glass container, seal tightly, and store in a cool, dry place.