Happy New Year Larry! I seldom needing heat in So Cal so others may chime in. I’ve always worry about the head gaskets on mine as she’s getting quarter century old and not being original owners, we are just doing the best to catch up with previously neglected maintenance. On the newer 5.7 V8, many are needing head gaskets now with lower mileage as they are both aluminum heads and block while the 4. 7 are more robust with aluminum heads and iron block.
Having said, agreed with your mechanic against any stop leak products. You may catch this early enough with no additional damages to the block! No short cut here just make sure the shop is capable and use only OEM parts imho.
Question on did you bore scope the cylinder to confirm the leak is coming from the plug area? In other words, the coolant leak is coming from a crack head, not leaking from the head gaskets. If so…these heads are not repairable, solution is either a new or used head. The quoted price of $2.5k seems reasonable, considering today high shop rate. It will be higher with full head surface and replacement.
Other items to consider replacement while you’re there.
1. Starter ( exchange remanf. )
2. Exhaust headers ( OEM or DH headers )
3. Heater hoses, heater tees, and heater core
At a minimum the head gasket job will include timing belt, water pumps, all idlers, spark plugs, valve seals, valve job at 300k miles. Also once you have the heads removed, the cylinders’ conditions will determine whether to throw more money into it or not. Here’s a pretty good video to educate yourself to communicate with the shop. Let us know your findings and good luck.