I checked the configuration of the kernel in the /usr/m0n0wall/build84/tmp/sys/i386/conf/ and the config file contains my modified changes. Here's my modification that I had made in the kernel configuration.
I had added these lines in the end of the file. Rest of the file is same.
#IPFW Firewall
options IPFIREWALL # enables IPFW
options IPFIREWALL_VERBOSE # enables logging for rules with log keyword
options IPDIVERT # enables NAT
And when I start m0n0wall and I checked the dmesg.boot file and this is what it says about ipfw
ipfw2 (+ipv6) initialized, divert enabled, nat loadable, rule-based forwarding enabled, default to deny, logging disabled
I even tried to add rc.conf file in the system with settings but still it didn't start the logging.
firewall_logging="YES"
Did I go wrong somewhere or is there any file that's missing ?