Rinse smelt under cold running water. Pat dry on paper towels.
In a plastic bag, combine flour, salt, mustard, cayenne pepper, paprika and lemon peel. Add smelt and shake well until fish are evenly coated. Half fill a deep-fat fryer or saucepan with oil; heat to 375''F. (190''C. ) or until a 1/2" cube of day-old bread browns in 40 seconds.
Place 1/2 of smelt in a frying basket. Lower basket gradually into hot oil and fry 1 minute, shaking basket frequently. Drain on paper towels. Reheat oil to 375''F. (190''C. ). Repeat with remaining smelt. Place all of smelt into basket and fry 1-2 minutes more or until lightly golden and crisp. Drain on paper towels. Turn into a warm serving dish, sprinkle with chopped parsley and serve hot with lemon wedges. Garnish with lemon peel strips and dill sprigs, if desired.