1990 Mustang 2.3 Cyl # 3 dead

I have a 1990 2.3 Mustang that suddenly started a solid misfire with loss of power. When I asked if there was and unusual bang, crunch, clatter, etc. just before the loss of power the answer was no. When I went to drive the car home I am quite sure that for a brief second it ran on all four.

When I pulled the plugs all were fine except #3 which had large (not oily) deposits on the centre and side electrode.

I replaced plugs with new with no improvement. I quickly removed the plugs and tested compression, throttle closed and engine cool. This showed # 3 at

At the suggestion of a local rebuilder I removed rocker cover and checked cam. Sure enough the lobes were very worn, looked like about 1/16" had been worn off all lobes. When I reported this to the rebuilder he was quite confident this (cam wear) was my problem and suggested I install a cam kit (about $200) or bring head in for rebuild/cam kit.

Any advice/insight would be appreciated, especially as to why the cam would have been so severely worn.

Thanks

I suspect a valve as well and almost had the head off but had to stop as it was to cold and rainy to continue. I hope to get it off today.

Due to the severely worn cam I was wondering if there are alternatives to the stock cam and followers (rollers maybe)?

Yup, that's what a burnt valve looks like

Soak it down with penetrating oil and let it sit overnight. then clamp a vice grip on it and try to break it loose.... wiggle it back and forth and keep lots of penetrating oil on it. Patience is your friend, don't break that stud off or your job will get much worse. Bob

Finally got the head off and found, as suspected, a bad valve on #3. The exhaust valve actually has a small triagular chunk out of it!

The bottom end looks good but it is dark out so I will check more closely in the daylight.

Unfortunately I sheared a head bolt leaving about 1/2" sticking out of block. Any suggestions on the best way to remove it would be appreciated.

Thanks.