Re: milky oil
I'm not a mechanic but here goes...
To inspect the manifolds, remove the riser and inspect the passages. Look for blockages, abnormal buildup, etc on the exhaust manifold and the riser junction. Depending on how long water as been seeping into the oil pan and if the motor is not run often, the piston rings may be rusting.
If the oil level is normal, than your most likely passing oil into the compression chamber and burning it. Or, you have an oil leak on the block.
I would remove the risers and post pictures of what you see.
Good luck!!
