Soak chips in water for 30 minutes. In the meantime, set charcoal to one side of the grill and light it up. Let the flames subside and you will see the edges of the coals turn gray. Place the top over the grill and close the vents to regulate the temperature. The target temperature is between 180 and 200 degrees.
Add the soaked and drained chips to the charcoal right before the wine pot is added to the grill.
To prepare mulled wine
To a large, grill-safe, heavy bottom pot (like a dutch oven) add all the ingredients but reserve one of the sliced oranges to the side for garnish. Stir all of the ingredients together well.
Place pot (without a cover) onto the grill but to the side of the fire. Do not place it directly over the heat. Securely close the grill lid and let the wine smoke for 30 minutes.
Remove the pot from the grill and stir. Serve warm with additional cinnamon sticks, star of anise, orange slices, and sugared cranberries.
You can add some of the orange slices directly to the grill to lightly char for an additional smoky flavor.Cool and let refrigerate overnight to intensify the flavors then warm over medium heat stovetop. To sugar cranberries, lightly drizzle cranberries with honey and toss in sugar.