Anyone ever heard of smoke coming from ignition and steering wheel?
Yes, I have heard of this, and I have seen cars burst into flames shortly thereafter as a result of this situation.
You have a short-circuited wire somewhere in the steering column. I would strongly suggest that you disconnect the battery immediately and have the car towed to a mechanic.
Yes–I had it happen on a 1965 Rambler and saw it happen on a 1962 Chevrolet Corvair that belonged to a friend. In both cases it was the ignition switch. In these cars the ignition switch was on the dashboard. It is a a likely suspect in your case, but be certain it isn’t the turning signal switch or any other electrical circuits that go through the steering column.
Thanks for the comments everyone. It is at the mechanic right now, just had never heard of such a thing.