Cluster Temperture Red Hot

[DoubleAIm]

Got a 2002 E53 3.0i with the temperature instrument cluster needle pegged to red but the red light doesn't come on. It only happens on the first start of the day in the cold after about 5 min drive, once I see the needle pegged, i pull over and restart the e53 and its back to normal. I have checked the coolant level and any leaks which is all normal. I am thinking it's the temperature sensor for the gauge cluster that is faulty but I'm not too sure which one it is. The one by the radiator hose or the one in the thermostat that gives the readings to the cluster gauge? Anyone can point me to the right sensor would be greatly appreciated. Thanks in advance.