Is my LM35 not working? I connected LM35DZ - plugged 5.25V from USB to VIN and ground from USB to GND. Then I checked the voltage across GND and VOUT - 0.0V. Then I tried VOUT and VIN - 4.75V. It should have been 0.23V (in room temperature) between GND and VOUT, as I understand. Then I decided to use higher voltage (12V), because,  datasheet specifies that VIN can be 4-20V. The moment I turned on my power source, smoke came out of LM35DZ. What happened? Was it some cheap chinese knock-off? There's no resistor needed or anything else. At least smoke smells nice...
The data sheet sample circuit shows either an open output (presumably into a high impedance input such as the '328's A/D), or connected to -Vs via a resistor chosen to draw 50 mA. Access to -Vs is not typical of our applications but they do show a current-limiting resistor to ground in that case. So I'd expect that grounding the output caused the device to draw more current than it could dissipate without overheating.