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The first thing you will need is good quality agarwood  chips. Poor quality chips will impart a smell that is too smoky, and the smell of smoke will overpower the smell of the fragrant resin inside the wood that is released when burned. 

Light up a piece of charcoal and place in in a mabkhar, or an incense burner. Alternatively you could use an electric burner for which you won't need a coal, but generally they do not heat up enough to fully bring out the resin from the wood.

The best sort of of charcoal to use are bamboo incense charcoals, which are fragrance-free and are made without saltpeter or sulphur.

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After the charcoal has burnt for approximately 10 minutes, a thin layer of ash will have formed on top of it. Do not brush this off. 

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Now place a small oud chip, about the size of a cardamom pod, on top of the charcoal. The thin layer of ash will ensure that the wood itself does not burn too much - rather the resin inside will heat up.

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In a few seconds, you will see that the color of the wood starts to become darker, and the surface starts bubbling. This is the resin being released due to the heat, and some smoke will start to rise now.

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You can scent your beard, clothes and neck with the smoke. Be sure not to let your clothes get singed by the burning charcoal!

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Put the oud chip aside once the smoke stops rising from it. Do not flip the chip. While you may notice that more smoke is emitted by doing so, it will have a harsh smoky smell that pricks the nose instead of the sweet woody smell you want to scent yourself with.

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The smell of smoke will fade soon, and what you will be left with is a spicy, sweet, woody smell that will keep you company for days, and will be the curiosity in the minds of those you meet.

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