I get white smoke from the exhaust in my 1981 380SE. Compresssion is OK in all 8 cylinders, but cooling water seem to penetrate into the front left-hand cylider, as the spark plug goes all wet. Some white steam (water) is also emerging from both valve cover vents but I see no water in the oil, or vice versa.
Given the lack of a signature for a broken head gasket (i.e., no low compression) does is seem likely that there could be a leak of coolant in the intake manifold gasket? Both gaskets (head and intake) were recently replaced (last year, 20000 km ago) during a repair from the consequences of a faulty timing chain tensioner (bent exhaust valves).
pej