On the DVDs, Cookie Monster can be seen as his character of Alistair Cookie in his “Monsterpiece Theatre” segment (a spoof of Alistair Cooke’s “Masterpiece Theatre”) smoking a pipe.
Yep, Cookie Monster smoked.
He later eats the pipe because, as he was often prone to doing, he thinks the pipe is a cookie. Cookie Monster used to become so overwhelmed by his desire for cookies that he’d start seeing (hallucinating about?) cookies that weren’t actually there. He’d eat (rotary) telephones, typewriters (what are those?), pencils, almost anything. It was funny.
Today, Cookie Monster’s diet is much more balanced, as he has adopted the philosophy that cookies are a “sometimes food.” Cookie coincidentally changed his tune in 2006 amidst reports that childhood obesity had reached epidemic proportions.