Breather problem or head ???

[muttley]

A little history, the car has not been on the road for a little over one year, during that time I have ran the engine quite a few times, up to operating temps, so it hasn't ran under load (driving conditions) for any great period, just a couple of drive arounds on private land, five mins max each time.
I have recently changed the turbo due to knackered oil seals, stopped it smoking
The car starts and runs perfect, except when I rev it, theres puffs of white smoke, there's no oil in the water and the oil is water free and don't seems to smell of petrol, I have never had the rocker covers off in all the time I have had this engine.
I done a compression test about a month ago, results were.
COLD
4=10.2 bar
3=10.0
2=9.2
1=10.0

HOT
4=9.2 bar
3=9.0
2=8.2
1=9.0
these figures are approx, due to I didn't totally trust the compression tester, as I was very old and battered.
In the pictures below, the inlet side rocker cover is very sludged with the milky deposit, mainly near the breather area and apart from the the oil filler cap, there is hardly any on the exhaust side rocker cover.
Note, that the metal breather pipe came of the cover, was very loose.

In this photo the cams are very clean apart from, top right (circled) a little sludge near the beather pipe


When I done the rear sub frame I noticed that the exhaust had a LOT of water in it, not coolant, just clean condesated water.
Help advice thoughts please, before I go through the route of head removal.
Many thanks Tony

[skylineslider]

moisture will get drawn into exhaust/breathers and other areas that get hot,if the car isnt driven much you will get a bit of milky milky in there

[muttley]

Well I have replaced breathers, put on some very clean rocker covers, changed the oil and the smoking appears to have stopped