Materials Needed:

1. OEM BMW roundel steering wheel badge (OEM part number: 32331117279)
2. Painter's tape
3. Sand paper (220 grit & 800 or higher)
4. Meguiar's PlastX
5. Spray paint / Model brush paint

Procedure:

If the colors on your steering wheel roundel for your classic BMW are all chipped or you want to custom paint it to match your car's color scheme we have a simple mod what will really set your interior apart from others.  First, remove the old badge by using a small flathead screw driver or pry tool.  You might want to tape the end of the screw driver to you don't scratch the emblem or scratch the rubber on your steering wheel.  If you have plastic pry tools, don't worry about taping it.

Once the emblem is removed, take the sand paper and sand the painted side of the badge.  It will not take much to remove the paint if you are using 220 grit, once the paint is removed go back with a finer grit like 800 and smooth out the back to make sure large scratches do not show through.  You will notice the silver is recessed in the badge and is not removed during this sanding process.  This is a nice bonus as you want to keep the crisp silver OEM paint outlines.  Finally, finish off the back side with a plastic rubbing compound like Meguiar's PlastX.  If the front of your badge is scratched go ahead and apply the PlastX to the front of it too to give it a nice shine.

Rinse the entire badge off with water and then apply rubbing alcohol to the back surface to make sure it is entirely clean of any oils or left over paint dust.  You want the cleanest surface possible when painting to ensure the highest quality.  Next take painters tape and wrap it around the edge of the emblem to create a make shift stand for the badge, this will prevent overspray from landing on the front of the badge.  See below images for clarification.  Next tape your emblem as necessary to paint the different sections of the badge the colors you desire.

We decided to go with a red and black theme to match our red needles in our E30.  The look really compliments the needles once in the driver's seat.  We had to apply multiple layers of gloss paint to make a thick enough coat allowing the colors pop.  We had to end up spraying some of the spray paint in a small cup and using a paint brush to touch up some small spots the spray paint missed. 

Allow the freshly painted badge to completely dry over night to make sure it isn't tacky and attracts finger prints.  Pop in your new roundel and you are good to go.  The best part is, if you screw up or get sick of the colors you can go back and do it all over again in a different color scheme.