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water in oil

Need more info; How much water are we talking about? Did you inspect the intake manifold for a leak at the t-stat housing while you had it off for the gasket replacement?
 
The motor is a 2.3 ltr Cobra by Ford. Their is a LOT of water. The new oil I put in is like milk. Yes i inspected all parts before reassembling them.
 
That motor has a heat exchanger.

Pressure test the cooling system with regulated air. You will hear the hissing.

My guess, maybe the head, or the block but i am hoping the exchanger, cause that is the easiest to fix.
 
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