You put a lid on it??? That is a NO NO! Those fryers with lids have air holes for the heat to escape. Air holes with filters.....

Never heat your oil over 400*, if the oil starts to smoke, it is way to hot and can burst into flames shortley. When it is smoking, the oil is breaking down and it is dangerous. Be sure you are using a temp gauge for deep frying.. You are lucky it didn't come out a whole lot worse.. Deep frying on the stove has set many houses on fire!