Start up smoker and get it up to 250F. You could use many different types of wood for this, although I usually use hickory, pecan, or apple.
Cut the top off the jalapeno pepper. Core the pepper to remove the seeds and membrane.
Mix together the cream cheese and grated cheddar.
Fill the cored peppers with the filling.
Take some of the sausage meat and wrap it around the pepper. Make sure none of the pepper is visible. Roll it in the egg so that it is in the shape of an egg.
Place the armadillo eggs on a smoker rack and place in the smoker.
Smoke for about 2 hours. You want the temperature of the sausage meat to be 160F. Also if you notice cheese starting to bubble out of the eggs, it is likely done.