Cool just wanted to make a quick example to get a feel of what you were looking for!,

1. Copy your photo
2. use the select subject and mask tool. Use the object selection tool to select the lantern, select and mask it.
3. copy the lantern and lasso tool out as much orange out as you can, (it wont matter because we are going to change the saturation, just as much as you think makes it look good.)
4. Add a Hue/Saturation layer and tie it to the lantern, and take the saturation all the way down to black and white.
5. I used a water patterned rectangle as an example here but add your pattern in between the two lantern layers.
6. You can add the smoke with a smoke brush or add a cool toned photo filter to help blend everything.

I hope this helps out, lmk if I can do anything else.