Green’s Dictionary of Slang

smoker n.4

[it fig. makes the brain smoke with effort]

(US campus) something difficult.

[US]Eble Campus Sl. Nov. 5: smoker – a difficult test.
[US]Eble Sl. and Sociability 45: To smoke a test means ‘to do well’ and a test that is itself smokin,’ or is a smoker, is ‘a difficult one’.