I hate doing stuff twice! I have to pull valve train back out to install new orings and clean so I will pull it back off. I’m guessing that is what happened unless the block is cracked somewhere. Thanks for the input.
Understand this is only my opinion--There are many out there on the forum--the fact that you are seeing "milky" oil is a bad sign, and COULD be related to the head bolt removal--But, the head is a pretty stout chunk of heavy metal, and the fact you only removed two bolts MAY not have compromised the head gasket--just the torque sequence.
There are a lot of posts about the advisability of 're torquing' the head bolts after a few miles running after a head reinstall-some say yes, some say no.
Did the cooling system have antifreeze in it when you discovered the milky oil? If so, you might be able to drain a small amount of the crankcase 'liquid' , put in a glass container and let it sit o'nite. If there is coolant in the oil, it should separate out with the coolant at the bottom. You might be able to see a color change, or 'smell' of whatever is in the bottom.
If it smells/looks like antifreeze, I don't know any other oil/water interface except the head(gasket)----{don't think 'F' engines ever had an oil cooler}--
Again, this apparent coolant leak into the oil system could also be related to a nick,bend/crush of the gasket when the head was originally installed, and may not have any relation to the two bolt removal.
The block crack is another issue altogether--that may only show up after the engine heats up--but it could be the culprit, as you speculated.
There have to be other members who have dealt withe this same issue--
Get more opinions--Check the FAQ--I'll try to find related posts that might help--