Dont panic; the blue smoke is normally a timing issue or an injector that needs replaced/ rebuilt. It could also be your combustion temps getting low enough to not completely burn the fuel, though that normally comes out as whitish/ grey. Mine smokes a little when you first start it in the morning; it goes away when you take off and get it warmed up a little.
Where is your thermocouple? With that kiknd of boost, it needs to be in the manifold; I had a 400deg difference of post vs pre turbo temps, at only 28 psi boost.
Daniel