This happens because cylinder pressure is leaking by the gasket into the water jacket. Every time I've blown a head gasket while running alcohol injection this is what happened. I never saw water in the oil. The water always left the motor through the radiator cap. Every time I've blown a head gasket with gasoline or E85,the coolant has always left the water jacket and ended up in the oil. I've always found this to be interesting. I never had success with Alky and quit using it. I can go a lot longer,with E85,before the next gasket change. Staying off of the factory rev limiter is key when the power gets up there. Ultimately,we have four tooth picks per cylinder,holding the heads down. I'm going to try 1/2" studs and see how long it will last.