I replaced the headgasket at 111k 11 years ago when i purchased it so this wouldnt happen. Still making 175psi compression on all 6 last summer when i replaced the spark plugs at165k mi. Dont have to worry about the headgasket blowing and washing the cylinder down with coolant causing the piston to scuff the cylinder or worse like what you have. Experience, 31 years as shop foreman at the same Honda Dealership. Find a good used running engine and replace the headgasket before you install it. Lots of wrecked cruiser getting parted out. Depending on the engine/ mileage it has you should be able to just replace the valve stem seals and clean up the head without any machine work. I dont recomend machining an overhead cam head for flatness at all and neither does Toyota.