The way that liquid smoke is made - is really just a very concentrated version of this Greg....LS is a "residue" or concentrate of steam scrubbers on the exhaust of big smokehouses. They collect and filter it - and...VIOLA! that is it. You can make your own smoked water by adding a few ( I would start with 2...add as you like) drops of Liquid Smoke to a pot of filtered water, stir - use it.
T