I am assuming this is Fahrenheit? Setup your controller the way you originally had it, and set your controller at a higher temperature. This will let you know if your controller is actually working. If the bisquette burner is enough to heat the cabinet to 120 or higher, there is no need for the controller to turn the heating element on. Setting the controller to 200°F, you should see it working. Once you build your cold smoke cabinet, and offset the generator from the cabinet (oven), you should be able to use the controller to heat the cabinet to 120°F or lower.
When you hook the controller to the generator, this will interrupt the electricity flow to the motor - turning it on and off. Thus shutting off the power to the generator while the bisquettes are trying to advance. This will either cause a jam, if the power interruption occurs during when the bisquette is cycling, or if the bisquette is not cycling during the time of the power interruptions, the timer will be reset to 20 minutes after the power is turned off then on - thus not advancing any bisquettes; or shutting off completely after the cabinet has reached 120°F. Also your burner may never get hot enough to cause the bisquettes to smoke.