We got it all broken in and it runs great. I noticed a little steam coming out of both breather caps. There is no water in the oil, no smoke out of the exhaust, no oil in the radiator everything seems fine. I used sealant on all the head bolts, the heads are good and fresh double humps. The block has been decked and I used the fel-pro steel shim head gaskets that are .015 thick. The plugs look nice and clean like it burning good. Everything leads to no problems but whats up with the steam?

It makes me think the head gaskets arent sealing properly but wouldnt there be water in the oil? The number 2 cylinder tube on the new elite headers didnt change colors like the rest did but after looking at the plug it appears to be burning like the rest of them. If water was getting in that cylinder wouldnt I be able to see white smoke out of the exhaust? I am at a loss here!

Are you positive it's steam? Pull the valve covers. If it is steam moisture should be built up under them. Make sure water isn't creeping up the head bolts even though you sealed them too. Those SOB's are a pain to seal sometimes.

Also, coolant burning has a distinct smell to it usually. I would dig up some old valve covers, and cut a slit down each one. The start the engine in a clean area and watch.

I have used my cut down valve covers many times and is a great tool for any car nut. Works great for adjusting valves as well so oil doesn't get everywhere.

Not odd at all, I see it all the time on break in with a new motor.

Thanks guys those are some suggestions. Also Rick I kind of thought it may be normal during break in but wasnt sure. My car had an evacuation system so I never saw any steam from the breathers.

Once the rings seat, or they don't, than you start worrying about what comes out of the breathers. During break in what we concern ourselves with is oil temps (a biggie) water temps and keeping revs up in the 2500 to 3000 range. Then, after 1/2 run time draining oil, inspecting filter, checking for leaks and running lash.

My car had an evacuation system so I never saw any steam from the breathers.

Thats a good point. It atleast sounded weird to me but I've always used a pcv or evac system and if anything I would see a little smoke out the exhaust which I never worry about on a new motor just yet.