Problem is you let the smoke out of the wire and the recept.
I've seen similar problems. Once I saw the wire glowing red. It was on a dryer recpt too.
Because things can get very hot, I will never use a plastic recpt box. Either metal or fiberglass. Plastic will burn. No thank you.
Keep the batteries in smoke detector.
I would get the ammprobe out and make sure the dryer is drawing the proper amps. What is weird, the ground wire connection looks like it got hot too. If this is a 3 wire, only the motor current will be going through the ground. That wouldn't cause things to get that hot. Is this a 3 or 4 wire plug? Definately get the probe out and do some measuring.
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