The Peng is a function on KITT's dashboard, mainly the switch pod.
("Just My Bill")
Peng was an alternate way of activating KITT's smoke screens but this was probably a mistake made in the editing room. Peng, along with Paux and Pind were buttons seen on KITT's dashboard, but their function was never truly determined. Some believe that "Peng stands for Power Engine and Paux stands for P ower Aux iliary. Pind is a mystery, however, and we don't have any real clue as to what they were truly meant for. Another button found on the dashboard was labeled Test 2.