Hello,
I have done this frosted finish on many things. As has already been mentioned, you need granualized particles of something harder than the material you're finishing. I use silicon carbide honing powder, which is readily available and comes in different grades, you can achieve a finer or rougher finish depending on the granule size you use, and since the silicon carbide is so hard, it can be used on hardened steel.
Here's an example of my work using this method, this is around 15-16 mm in diameter, i used a fairly fine grade powder for this:
Another method mentioned was the steel wire wheel method, this is best done on brass because steel is generally too hard to be affected from the wires, this is done with a wheel with a full diameter larger than 4 inches, you pull a few of the wires out to the side of the wheel and use those against the brass, so essentially you would be using the "corner" of the wheel as it's turning, this is apparently a difficult technique to learn, but i haven't used it very much, though the times that i did use it, it didn't seem all that difficult.
Here's a piece of scrap brass that i tested this method on a few years ago, this was the first time i tried this method and i didn't have much trouble with it, i think the trouble comes when you try to get into small corners which you would have to do with some watch bridges: