I'm going to use the block tester out, I just watched some videos. Then it's off to the shop once I figure out what it is or if I can't figure out what it is. Thanks everyone. I'll report back soon.

@Jhill, do I put the block tester on the oil fill or on the radiator?

Happened a few times on my wife's Sonata...short trips, cold ambient temperatures. Had the oil changed and it never showed up again. Let's hope yours is the same...

Really stupid question, but is it possible that the ARC combo tank is letting the goop from the catch can mingle with the coolant?

You've got coolant mixing with your oil. Not good. I've been there before, Mine was a cracked cylinder on an old CJ5 not fun. :shakes head:

Goes on the radiator fill.

Oh boy. I hope it is not serious.

Another easy way of checking oil for water contamination is to CAREFULLY drizzle the suspect oil onto a hotplate or similar. If the suspect oil snaps, crackles, and pops then it has water in it. If is just flashes/evaporates away its not contaminated.

Hope it isn't too serious but I've seen an MR2 with a blown, well cracked head gasket and his oil cap looked the same. Also the exhaust fumes and thickness of the cloud was off as well. Any difference in exhaust smoke? As in an extreme excess..

I remember seeing the same thing in my '76 Subaru in HS, blown head gasket.

Looks like condensation. Moisture evaporating, and the cap is the cool spot where the moisture collects. Common problem with some oils with short trips. My one 5.7 Hemi is great at doing this Possible cause could be the ARC tank also. You can go to a shop and have them check the cooling system for combustion leak into the system.

That is a possibility. I plan on inspecting it this weeks when I use the block tester as well. I hope it’s not serious, it’s really depressing.

If it’s worse case scenario, what is the cost of replacing head gasket. I know the head needs to be sent out to check for any warping.

Such a drag. Super bummed right now. Thanks everyone for the replies and advice.

Thank you sir.

Reporting back that I found the issue. My ARC catch can had water in the tank and it pulled it through the tubes. I have a video of me emptying out about 2-3 oz of water. I took it out and cleaned tubes and tank and left to dry. Tomorrow I will use the block tester after I put it back together just for comfiirmation.

The next step is change oil out. Should I change oil and let it run a bit and then change again or will I will be fine with one oil change?

Oil's not that expensive. I'd change twice if for no other reason than peace of mind.

If you change the oil twice. You will not get the moisture out. Unless you get the engine hot enough to evaporate the moisture that's on metal.