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condensate in oil

hello everyone:
i'm runnig 351 w. stroked to 427. Someone told me running to low of a thermostat can cause an unusual amount of condensation build up in the engine? (IS THIS TRUE?) i am pretty sure water from the cooling system is not leaking it's way to the oil because i've had my valve covers off many times and the oil is clean but there is a pretty bad white build-up around each oil breather cap. Sort of looks like that white lithium grease. Also, when i shut my engine down my water bottles go crazy, sounds like water is boiling thru them but my temp gauge reads no more than 165 to 170. i can also check my oil after a long run and this white build up will be on the stick but when i wipe the stick and check it again at the same time it's nice clean oil. i believe the thermostat i'm running now is a 160. What would be the correct brand and temp. thermostat to run?
thanks,
rodman
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