So the car has been having cooling issues. Replaced the expansion bottle and cap as coolant was leaking (original bottle was still on the car (e46 bottle known to explode)) only to find the waterpump has packed up (electrical pump know for issues on the N52, N54 engines).
So bought a brand new pump at dealers and also a thermostat housing.
Start by removing cap on expansion bottle and remove blue drain plug from radiator to drain all the coolant. Replace plug when finished draining.
Old pump and housing
Red circles indicate bolts to be removed (arrow shows hidden bolt). Use E12 Torx and 10mm Socket.
Green shows plugs to be removed, purple shows clip-style pipes (slide clip up to pull pipe off), yellow shows normal clamp rings which can be loosend with flat head or socket.
New pump and Thermostat installed.
After pump is installed you need to initialise the bleeding procedure.
Remove expansion cap and bleed screw and fill till coolant seeps from bleed screw.
Replace cap and bleed screw.
Turn key to position 2, crank heat all the way up, fan on low, and press the acceleration pedal and hold for 10 sec. The pump will start up (sounds like a washing machine) and will pump all the air to the reservoir. Takes around 12 min to finish.
Open cap and fill coolant till stick shows proper level.