Hold up, here comes grandma, what’s up Yiayia?
What’s that smell? Oh I’m just boiling some agua
No papa, bad Santa

from Kanye West (Ft. Frank Ocean & Jay-Z) – Made in America Lyrics on Rap Genius

Meaning

‘Yiayia’ is Greek for grandma.

His grandmother comes in, so Jay has to lie and tells her the funny smell of crack cooking is just water boiling. As Jay implies but is far too smart to actually say in rhyme, he’s not fooling anybody, least of all his grandmother

“No Papa, Bad Santa” refers to the Billy Bob Thornton movie where the little boy did not have a father (he was in prison) and was raised by his grandmother — just like Jay-Z

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