I am currently replacing a light switch with a ceiling fan and light control. The description of what I am replacing with is:

I currently have a ceiling fan with a light kit (and it too high off the ground to have the fan controlled by a pull chain).

When I removed the old switch - there were 2 wires (black and red) connected + ground. An additional white wire was braided and capped. The switch I am replacing with has black, blue, and red wires + ground. The instructions are terrible. Well, not terrible, it was just giving as a wiring diagram which I am completely unfamiliar with. I attempted to wire it - according to my interpretation of the diagram - and when I switched the power on - I heard a pop and the controller started smoking from the inside. Obviously, I did something wrong and since then, I have purchase a new one. Can someone please help guide me in the right direction in which wire connects to what?
Thank you in advance!