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To make BBQ Sauce: Heat 1 Tbs oil in medium saucepan over medium heat. Add 2 slices bacon and cook, stirring occasionally, until crisp and browned, about 5 minutes. Using a slotted spoon, transfer bacon to paper towels, leaving fat in saucepan. Let bacon cool.
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Add 1 chopped yellow onion to saucepan and cook, stirring occasionally, until golden brown, about 4 minutes. Stir in 2 cloves minced garlic and cook until fragrant, about 1 minute. Stir in 12 oz chili sauce, 1/2 cup peach preserves, 1/3 cup bourbon, 1/3 cup vinegar, 2 Tbs mustard, 2 Tbs Worcestershire sauce and 2 Tbs molasses. Bring to a simmer and reduce heat to medium-low. Simmer, stirring often, until reduced by about one quarter, 20 to 25 minutes. Finely chop cooled bacon and stir into sauce; add 1/2 tsp hot pepper sauce. Let cool. Makes about 2 1/2 cups sauce. Sauce can be refrigerated for up to 4 days.
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3
Soak 2 large handfuls apple or hickory wood chips for 1-2 hours.
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To make ribs: Mix 2 Tbs paprika, 1 Tbs sugar, 1 tsp onion powder, 1 tsp garlic powder, 2 tsp salt, 1 tsp black pepper and 1/4 tsp cayenne pepper together in small bowl. Season ribs with paprika mixture. Let ribs stand at room temperature for 15 to 30 minutes.
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5
Prepare an outdoor grill for indirect cooking with medium heat, about 350 degrees F.
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For a gas grill: Use a smoker box or create one using small, shallow aluminum foil pan. Remove cooking grates. Preheat grill on high. Turn one burner off. Place disposable aluminum foil pan over a burner, adding 1 handful of drained chips. Replace grates.
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For a charcoal grill: Place large disposable aluminum foil pan on one side of charcoal grate and fill with 1 quart water. Build fire on opposite side, and let burn until coals are coated with white ash. Spread coals in grill opposite pan and let burn 15-20 minutes (you should be able to hold your hand about 1 inch above the grate for about 3 seconds). Add 1 handful of drained chips to coals. Position cooking grate in grill.
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Lightly oil grill grate. Grill ribs with indirect heat, with the lid closed, for 30 minutes. Add remaining drained chips to box or coals. Grill, with lid closed, turning occasionally, until tender, about 1 hour more. (On a charcoal grill, add more charcoal as needed to maintain temperature, leaving grill lid open for a few minutes to help charcoal ignite.) During the last 15 minutes, brush ribs with some of the sauce, turning every few minutes to glaze. Transfer to platter, cover tightly with aluminum foil, and let stand for 5 to 10 minutes. Serve hot with remaining sauce, if desired.
