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So I currently have a 1980 316 in process of restoration and while we are at it I wanted a little bit of extra power with it (130-140 crank hp, so basically 323i level). And due to the laws in turkey I cannot swap in a 6 cylinder sadly. So the best option looks like an m42/m44 but those need a fair bit of fabrication as far as I could find on the internet. So I thought maybe I could get that power out of an m10b18 out of a e30 318i. (No 2 liter m10's because they are quite rare in my country). So my question is can I make those power figures from that engine with cams, headers etc. without sacrificing daily drivability too much or should I just get an m42/m44 swap? (I also have the original engine if any parts are needed to be swapped onto the m10b18.)

Easiest to go is the m10b18 engine. All fits well, like gearbox etc. But beware, you'll need to wire a different fuelpump and a tankunit. And some wires. Not sure if the fusebox can stay.

A bit harder to go is that m4x engine. You'll need a custom wireharnass, engine mounts etc.

An M42 is a bit more work, but it totally transforms the car.