1) More fuel will make for higher EGTs, all else being equal. You need to balance the fuelling increase with an airflow increase, which you seem to have started on. Try a 16cm exhaust housing to increase spool up and get more air in there. What kind of EGTs do you run at cruise on flat ground, 60mph? ANd where is your thermocouple- manifold or exh pipe? If it is in the pipe, it may not be entirely accurate for what is in the manifold; the subtract 300deg rule (for post turbo) is unreliable, IMO.
2a) When you set the timing, what did you set it to? And how did you find TDC? If you used the timing pin, you need to verify its accuracy. I am lucky enough to have 2 trucks that the pin is dead on (w/in 1/4 deg) TDC. Others here have had their timing pins off as far as 5 deg one way or another, rendering a timing set a waste of time when relying on the pin.
2b)What do you mean by pump advanced to the max? If you advanced it too far (like the 2. 05mm I ran for a short time), you run into a loss of bottom end, increased fuel consumption, excessive cylinder pressures, etc. I have had good luck in the 1. 5-1. 7mm @ TDC, depending on elevation.
4) What kind of shape are your injectors in? If they are crudded up, or the pop pressure is low, that can bring your MPGs through the floor. I had a 93 W350 that passed emissions with 6% opacity (almost no visible smoke), yet the injectors were popping open 500psi low. Got them reset, and gained 4MPG.
5) After all that checks out, your transmission may be a little weak, esp the torque convertor, though they normally are good to 150=200K, IF they are maintained properly. That means changing fluid/filter at the time interval if you havent reached the miles yet.
Good luck in getting yourself up to the 18-20MPG mark. Mom's 92 got 20MPG intown when I owned it; now gets 17-19.
Daniel