It's always a good time to change valve stem seals if you have the cylinder head off.
Right, suspected that, will look at that now.
Took the RH cylinder head off today (took its time, I have a smashed RH shoulder and need help from my neighbour for heavy screwing).
Before removing the cylinder head, checked all sparkplugs, all 4 sparked on demand as they should, and they looked reasonably clean all of them - didn't like that.
Off with the head.
It was clearly a very bad gasket.
Could easily see how water had leaked into the combustion chamber and caused white smoke.
Could also easily see how engine oil had leaked into the chamber and further into the exhaust piping.
Could, however, not see any reason for the mill running on 7 instead of 8 cylinders.
SURPRISE: all 4 sparkplugs were reasonably clean, all valves were reasonably clean, as well as piston tops and combustion chambers.
Anyway, will commence on the gasket making stuff tomorrow.
Re running on 7 rather than 8:
Have had similar problem before.
I use a Merc Benz one speed external fuel pump (manufactured by Bosch).
At least once, maybe twice, before I've had to change the pump 'cause it did not work with high enough pressure.
(maybe the Benz pump does not fancy serving a Toyota mill)
Have a spare pump in my box, will try that if 7 rather than 8 continues after gasket fix.