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She's gets lit by Jaaaames.
"It seems Maud takes only one or two puffs on the cigarette after it's lit, then it--and the smoke--disappear, and she does not smoke again in the picture. Some might consider this a blooper. (Presumably, Octopussy puts the cigarette down off-camera and forgets about it or finishes it after the action goes elsewhere.)"
Other references to this movie:
Maud Adams - Info - video, Octopussy (1983), youtube, c. '83