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Lamb is popular meat in this household! I've grilled lamb over mesquite and also with hickory, but never smoked any lamb. I don't see any reason why apple wouldn't be great with it.
What cut are you smoking?
I say go ahead, it's a good match. Keep us posted and don't forget the q-vue!
Apple is the way to go. I use it most of all. Hickory is a close second. I personally have never smoked lamb, just grilling but after your report I mite just have to give it a try.