Correct, the can is inside the chicken. Seeing as the can is metal (aluminum is a good conductor) and having it inside the cavity of the chicken (radiant and convective heat) it's not unreasonable to think that the liquid can steam before the chicken is done. A 400º bbq != 400º internal meat temperature.
Did you have a bad experience with this recipe? I can assure you that I've successfully used this method of cooking many times and never had burned chicken.
If flare ups are an issue, just put a drip tray under the chicken. I don't see how flare ups are happening though as you should be using indirect heat for this recipe.
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