Sure.
1. What is the better/preferred way of doing this out two given above in terms of performance?
the preferred one is Electronic Power Steering as it puts less load on engine and is easy to fit
2. What is the expected cost for each of these? Which one is more expensive?
EPS is cheaper
3. Is there any other way to make the steering wheel movement bit smoother?
No because Steerings r designed to get harder softer according to speed, smoothing up the movement manually is dangerous
4. What risks are involved in this conversion/alteration, like can it increase the chances of malfunction and what can be happended in case of malfunction? Like can steering wheel be jam/stuck? Can it be free? or what?
No risks at all, as it is electronic, the steering gets softer when speed is slow and automatically gets harder on high speeds to prevent the car from rolling over, the worst that can happen if the EPS malfunctions is that the steering turns into a normal steering
