Engine Woes

[nango]

Hello All
I had a blown head gasket in the middle of nowhere a few weeks back. I had it repaired locally . The head was sent to be machined and it appears as though all the gaskets have been replaced. The mechanic seemed to think the rest of the motor was OK when he had the head off. It ran fine [fantastic in fact] for about 300 kilometers. I then noticed coolant level was down. I could find no leak . There is some water in the oil! Not cafe latte yet, but if I leave it It will be.
Is there anywhere else other than a head gasket where the oil and water can get it together?

Engine overheated to 3/4 so I shut it off and bled the radiator when coolant went low. Other than using water the engine is running fine. I am not driving it anywhere at the moment though.
Thanks in advance

It is a late 1987 735i with 280,000 on the clock.