Using definition 1.
smallest(4, [2,6,1]) = smallest(2, [6,1]) (since 4 > 2) = smallest(2, [1]) (since 2 < 6) = smallest(1, []) (since 2 > 1) = 1
Using definition 2.
smallest(4, [2,6,1]) = smallest(min(4,2), [6,1]) = smallest(2, [6,1]) = smallest(min(2,6), [1]) = smallest(2, [1]) = smallest(min(2,1), []) = smallest(1, []) = 1