Knock and smoke

Water/coolant is heavier than oil so this is bad. We seem to have an internal coolant leak. Could still be intake gasket. I still would not pull the heads off. We need to rule out the intake gasket especially the corners. You can also inspect the Cam Lobes I believe once the intake is off.

About how much water/coolant came out before seeing oil??

I just cracked open the oil plug until a stream of water was streaming out.