Exhaust leak into the cooling system on a 225 Kaiser 6 Cylinder??

[dbalfisto]

I may be too late into this particular discussion but as a protocol, I agree with the revised torque sequence, almost all head gaskets will seat better working inside out.  A few recommendations:
-Clean all surfaces
-Run straightedge on head (have machine shop grind straight if warped) yippee incrementally higher compression.
-use new bolts if possible
-chase all threads and blow clear
-coat bolt threads, shaft and head mating surfaces with anti seize lubricant
-perform the torque sequence in stages, first torquing to 20# then 30# finally pulling to final spec'd torque using smooth pulling motion avoiding jerks.

Looks like you have done more disassembly so lapping the valves would be a great prophylactic procedure and pretty simple at this point, I haven't bought valve grinding compound in a few years and have a now antique hand cranked oscillating grinding tool. Pretty simple and you can inspect valves and seats for cracks or blow by.
     

[pjkaiser]

Ok, it is finally together, exhaust manifold welded and both manifolds have been planed.   The car runs great but I need a heater control valve or a kit to change the seals.   I will bypass the valve until I get them.

The Engine is now detailed and looks more like the outside of the car.   

I went with an on-line Continental manual for the valve adjustment:   Intakes .014" ;  Exhaust .017".    I did not go by the manual because it says both adjustments are at .014".    It goes against the grain not to have the exhaust valve a little more clearance since they run hotter.

[Bobm90]

Looks Great, best of luck with it!!