I have heard it called "Jeweling" as well. You see it a lot on the bolt of well made rifles. As far as technique, there is two I know of. The first method is to us a tool that has a wire bristle on the end of a shank, that you chuck up in your spindle. You bring it down to the piece you are working with and let it sit just on the surface to make a nice swirl pattern. Some type of cutting oil is used as well. To make a nice job of it, you would then accurately index your part to make the next swirl, and continue until finished. Having your piece ready to be either rotated for round pieces, or the milled table moved in a linear fashion with keep the pattern straight pleasing.
The second method I know is like the first, except you use a wooden dowel to touch the work instead of a wire bristle. Same principle, just barely let it touch the work. I would assume this method is to be used on fairly soft material.
I have not done this myself, only what I have read or heard about. Hope this helps.