The fuse blows when the amperage in the cicuit exceeds the fuses rated burn. Usually caused by a dead short somewhere in that circuit.
I would be looking under the dash since you had smoke. If it isn't obvious you could hook it back up, I suspect it would heat again. Take it seriously though, smoke usually means a wire or wires that the insulation is burning off of. So look for a bare wire and burnt insulation.
You have some clues, you know what the fuse controls, you know the cluster wasn't working, you had smoke in the car. Good Luck
Current ride... '13 GTI Wolfsburg
BMW's from my past...
'92 535i/5 '89 325ix/5
'98 750iL '86 325(e)/5
'95 740iL '84 318i/5