Well the definition of doing well is different for each and every student. For majority of the students out there, they would like to secure higher percentage and think that they are doing well. But in my opinion , doing well means to understand each and every topic from its basics to advanced level. Because if your theory part is strong then only you'll be able to appreciate and perform practical in a better way.
So it depends on you whether you would like to a student who crams up all the topics and get 80%(because getting more than 80% in MBBS is extremely difficult for even toppers) or u want to understand the jist of each topic so that you'll be able to make a better diagnosis which is the most important work we have to do as a doctor.
Now coming to the first part of your question
What is the smart way to study?
According to me, just make sure that you have been bounded to a time limit.
It helps you in increasing your accuracy as well as your speed.
Make notes of each and every topic in your own handwriting or in Evernote. I still prefer the second option.
Make sure that you have understood the topic well.
In first reading you won't be able to understand even 20–30% of it so you have to just make an habit of reading it for atleast 3–4 times.
Now coming to individual subjects.
Anatomy- The biggest fear of any MBBS 1st year student. A boy who had just cleared the NEET by reading NCERT text books for him it seems that he will not be able to cover this deadly subject within 1st year.But believe me it is the most interesting subject. Just go through the diagrams and practice those diagrams as much as you can. Refer only B.D.Chourasia for anatomy.You can use Grey's anatomy as a reference.
Physiology- This seems to be an easy subject but believe me if you are able to understand each and every topic of physiology then only you'll be able to understand Pathology, Pharmacology and Medicine. Physiology is basic science for all these subjects.understanding understanding of the subject, I would suggest you to read either Ganong or Guyton. I had preferred Ganong. Just make flow chart for each topic. Make it as simple as possible.
Biochemistry- This is also a very easy subject. I have completed it in just 15 days. But let me give you an example- If a patient comes to you with his blood report or any other biochemical test which u have not read or you have no idea about what's written over there in the report then you won't be able to make any diagnosis. So the biochemistry is all about normal values. If you don't the normal values, you won't be able to interpret abnormal ones. So for that purpose, I suggest you to read this subject with your full heart and open mind. Honestly speaking I hadn't gone through the Lippincott but my friends who have read it are much better than me in biochemistry. So you should also go through it. From exam point of view, u can prefer Pankaja Naik. Again make flow charts here. Try to revise the normal values in your daily life by going through the reports of your relatives, family members, neighbours etc.