Alternatively above entries can also be put in /etc/my.cnf file too. Better place to put this instead of modifying packaged/default startup script - /usr/local/mysql/support-files/mysql.server. Anyway its individual choice.
Now try to start the server by clicking Start MySQL Server button in MySQL System Preference pane. I could start the server and can create a new server instance using MySQL Workbench. I was a happy man. But my happiness did not end long. As soon as I restarted my laptop, I got an annoying alert...
Insecure Startup Item disabled. “/Library/StartupItems/MySQLCOM” has not been started because it does not have the proper security settings.This was because an entry in /etc/hostconfig as MYSQLCOM=-NO-. Due to ownership issue on startup item MySQLCOM, above alert was flashing on OS startup. To fix this just change the ownership of MySQLCOM startup item as shown below
sudo chown -R root:wheel /Library/StartupItems/MySQLCOMTo test just logoff or restart the system and that Insecure Startup Item disabled alert should not come again.