Unfortunately, the Bentley manual only has how to do this for the other e36s. It took me several attempts to figure this out, not to mention having to lie upside down so that my head was under the dash, but here it goes:
1. Remove driver side lower dash panel. There should be three screws holding it in place, two under the dash, one on the side of the car - requires opening the driver's door to access.
2. Remove knee bolster - its the weird hard foam looking thing behind the panel. Has three bolts that attach it (I used a 10mm socket).
3. Remove headlight switch knob by turning it counter clockwise. Once you have rotated through the "acceptable" positions, keep turning, it will then screw off.
4. From a vantage point that puts your upper body under the dash, shine a light upwards so that you see the switch assembly. Disconnect the wiring connector by applying gentle pressure on the plastic retaining clip and use a flathead screw driver to work the connector loose.
5. If you look at the switch assembly, along the cylindrical portion leading towards the knob you will see a slot with a slight tab sticking out. Use your flathead to push in the tab, then in a little. This will pop the switch out of the housing and allow you to remove it either with your screwdriver (or if you have removed your cluster, you can just reach in and pull it out.
6. Installation is the reverse of these instructions.
I hope I save someone some aggravation