Ran the test again on the cylinder in question once cooled down. Back to 35%, Looks like its time to get out the wrenches.
As far as the milkshake, I noticed after running for 45 minutes more than normal steam started coming out from the even bank.

Pull the intake manifold and check the gasket area where water ports are. Most common cause of water in oil. It will squirt water under pressure into intake valley area and cause milky oil and creamy oil up in the valve cover. Check this first Steve

Offduty, Checked that as well. Cleaned up the surface and ran a straight edge. Off the top of my head I dont remember the exact clearance but was very slight.