milkey sludge
W what you describe is a sign of oil getting into the coolant system. sometimes the other way around.
it takes a lot of coolent to show up on the stick,where you will find it first is in the under side of the valve cover's , (on a stone cold eng) (eng left off for say 12 hours)when it gets really bad you will notice the need to add antifreeze /water in resv. and then shows up on the stick...
Oil pressure is greater than water press and being this eng doesn't have liners ,there o-rings and pin holes it them is out. .
The most likely source is the oil cooler area. Havent looked at the break down of that assy to know if is is like the big rigs,but you can take a sheet steel make a test fixture ,tap a hole and with a regulator so you can preassure it (15 lbs) leave the oil passage open and fill with water ,turn on the air and look for bubbles. .
in theory it could be from the head--but it would a worp or crack from the water port to the oil hole with out picking up compression,??? tough call,should have kept brother-in- laws head gasket to refresh my memory . IF you pull the head have it mag'de and surfaced planed---Didnt say if this thing ever got hot on you??? Got to check my cummins break down book. After taking wife to the movies!!!