Take the bologna out of the fridge about 30 minutes before smoking to warm up slightly.
Light hardwood lump charcoal or hardwood in your grill/smoker and wait until the coals get white before continuing. We used a mixture of oak and mesquite woods.
In a small bowl mix together the brown sugar, onion powder, mustard and Worcestershire sauce, and the coarse ground pepper. And set aside.
Remove the packaging and rind from the bologna. Cut a V shape out of the top long side of the bologna about 1-inch deep.
Along both sides of the bologna, cut a diamond pattern about ¼ to ½-inch deep. This will allow more seasoning and smoke to penetrate.
Poke 6 holes throughout the sides of the bologna and press the garlic deep inside.
Place the bologna in a large cast iron skillet and pout about ½ to 1 cup of the soda in the bottom of the skillet, or until the bottom is generously covered.
Grate the jalapeno into the V shaped notch. Spread the brown sugar mixture generously all over the bologna with a spatula or spoon.
Place the skillet on the indirect side of the heat or colas and regulate the temperature to around 250 degrees F. Cook for 30 minutes with the vents slightly cracked.
After 30 minutes, add a few handfuls of more wood to enhance the smoke flavor (mesquite, hickory, fruitwood, etc.). Take a large knife and poke down thru the V shape in 3 places to allow some of the seasoning to absorb more.
Cook for about 3 hours or until a good crust develops on the bologna and the diamond pattern opens up slightly. Add a few more pieces of wood every 30 to 45 minutes to keep the temperature constant and to enhance the smoke flavor.
Remove from the grill and let cool about 10 minutes before slicing. Allow to cool completely before refrigerating.