As he prepares to captain Australia again in the absence of the injured Pat Cummins, Smith is set to face a hostile reception from the travelling Barmy Army fans during this summer's Ashes.
Smith, who accepted a 12-month ban for his role in the ball-tampering saga, has never been allowed to forget the darkest moment in his career by opposition fans.
Panesar has given provocative comments, wanting England players to sledge Smith about the infamous 2018 Newlands Test.
"Ben Stokes and the England team have got to make Steve Smith feel guilty and play on that," he told Aceodds.com.
When asked on Thursday about Panesar's comments, Smith said he was going "off topic".
The 36-year-old brought up Panesar's ill-fated appearance on UK show Mastermind in 2019.
"Who of you in the room have seen Mastermind and Monty Panesar on that? Any of you?" Smith quipped to a packed press conference at Perth Stadium.
"Well, those of you who have, you'll understand where I'm coming from.
"And those of you who haven't, do yourself a favour because it's pretty comical.
"Anyone that believes that Athens is in Germany, that's a start.
"Oliver Twist is a season of the year, and America is a city.
"Doesn't really bother me, those comments."
Panesar, who played 50 Tests for England between 2006 and 2013, did indeed give all those unfortunate answers Smith referred to.
He replied Athens when asked where Germany's national football team played international matches until 2001.
America was Panesar's question to an answer about which city the TV show Cheers was set in.
His third last question was: "In an 1819 poem, what season of the year does Keats describe as 'a season of mist and mellow fruitfulness'?"
Panesar replied: Oliver Twist.
On hearing of Smith's response, Panesar felt he must have touched a nerve with the Aussie great.
"It's an interesting one. I think it's still in his head, 100 per cent," said Panesar.
"I find it so funny that he's memorised the questions and answers. The best way to deviate from it is say something completely funny, comical, what I did on the show and it will move everything on.
"If I was in the England team right now, I'd be thinking, 'Monty's just given us a piece of ammunition that we can use on Steve Smith'."'
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