For awhile now I've been just burying the wood chunks unwrapped at spaced intervals in the bottom of the basket. Then putting the lump over the top and in between. I think the smoke I've gotten from that has been pretty clean. Often, I can't really even see much of the smoke. I had wanted to see if the foil approach improved much so I tried wrapping the chunks in a foil pouch for my recent beef short rib smoke, with two holes poked in the foil aimed down at the fire. I thought this method worked well also, but having been the first time doing it (and in a bit of a rush), I put my meat on before the initial onset of white smoke. It was brief though and cleared up to a nice smelling blue smoke. I'll need to try it more to see if it's worth it but for the first time doing it, I didn't notice much difference. Either method seems to work pretty good to me.
I can tell you what though, my first time smoking a pork butt on my PK360 before I got my KK I did not know what I was doing. I white smoked the hell out of that pork butt for hours and it was nasty. I probably shortened my life by 10 years by eating that stuff. Each time I ate it, it went right through me 😬