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Great advice here - you guys are on it. I think moisture buildup is the most likely diagnosis. My wife drives primarily very short drives in this vehicle - 6 miles or less. Since I saw this phenomenon once in cold weather and not in hot weather, and the oil appears fine, the most likely conclusion is that it's moisture which would burn off on a longer drive where that upper valve cover and oil cap got fully up to temperature.
On the low coolant, I think the fact that this vehicle will be 6 years old next month, perhaps a bit of coolant has evaporated or burned, etc. I checked the coolant tonight and it was slightly low. About 0.6 gallons of 50/50 water/BMW coolant brought it up to the max line while running at temperature with heater set to max.
I'll be checking that oil cap after longer drive to confirm the theory! Thanks guys!
Don
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