Of all the things I put in my smoker, and that's pretty much anything that will fit, Cheese is BY FAR my favorite thing to smoke.
I like to get huge blocks of 3 or 4 different kinds and cut them up into dice sized chunks, it's a bit of work but it's TOTALY worth it. I use a wire for a cutting, it works really well, a lot better and easier than using a knife. Maybe I just need a better Cheese knife?
After smoking I like to throw a half dozen pieces on a plate and throw them in the nuker for about 15 seconds. It ALMOST melts the outside but turns the inside nice and warm and soft, absolutely AMAZING! My girls BFF throws a bunch of pieces in a small skillet and really melts it good, a little dab on a cracker and you're in Cheese heaven!
Babybel's are REALLY good smoked, and they come in the perfect size for smoking.
My buddy throws the whole block in but only a small percentage actually gets hit with the smoke, I find the more you dice them up the more smoke flavour they get. That's just what works for me..
If you've never done Cheese before, do yourself a BIG favour and give it a go, you wont be disappointed. Especially if you're a big Cheese aficionado like myself. I LOVE a good Cheese.