OK now you may be able to do something here, you think the water came from the manifolds/risers, what you might try is installing the new exhaust, run it till it gets good and hot and do 3/4 oil changes to get all the moisture out I think its worth a try. Keep in mind my engine had salt water in it for over a week before I figured out what was wrong. I drained out all the water, got the boat home, and kept running it, changed oil, drained water, etc till most of the milkyness was gone. Did 3 oil changes that fall, drained all the water out fogged cyls. Then dealt with the blown head gasket and bad heads in the spring/summer. After I changed the cyl heads and gaskets, I changed it 2 more times. Checked it a few weeks ago when charging the batts and its like new oil, both on the stick and under the valve cover. You have nothing to lose, but the cost of the oil and time, by doing this. In order to get it all out, you will have to run it, because the water makes it even thicker and no way will it pump out then. The draining and fogging I did, really helped avoid rust in the cyl walls. I pulled out all the valve lifters and none were rusted, anywhere. Same with the pushrods/rocker arms.
So I say, don't give up yet. Get your new exhaust bolted up and go at it!