Take a look at my attached pic. You can see on the valve cover a milky, thick substance which looks like coolant in the oil. Then if you look at the oil in the head, it is 'more' normal looking, it may have a hint of milk to it. What is going on and where should I start? This was after a head swap so it could be almost anything. Thanks for any input.

EDIT: Taking a closer look at the valve cover, I could see where some water had seperated and it was clear, not orange. I did do the swap outside and it did rain pretty hard with the engine open but I though the underhood was sealed, could it just be rain water?

 

if it is moisture, it is alot....

 

you didn't change the oil after the R&R? make sure the pvc system is clear and working, change the oil and, clean the valve cover and run it some more.

 

I changed the oil and drove it about the same distance as before and the oil looks fine. I'll keep my eye on it but it was most likely rain water.