Get a manual too.
You may want to consider getting a Yanmar manual on the 1GM engine. It covers 3-4 of the GM series engines. If you are cranking the engine very long, you should turn OFF the raw water intake. Once the engine starts you can open the raw water intake. DO NOT crank your engine for more than 15-20 sec. at a time. You can/will overheat the starter and possibly burn it out. I assume that the puff of smoke you are seeing is a result of cranking and not starting. Then the engine pushes the exhaust out when you get this back fire effect. Remember that the Yanmar diesel engine is starting the engine on compression only. Unlike some other engines that utilize a 'Glow Plug'.If you have the manual, they explain a cold weather starting technique that has to do with de-compressing the engine. It allow you to spin the engine without compression, which helps pre-oil the engine and changes the timing. You should also move the throttle lever to full open throttle position too.