head gasket

Unless you have the block and heads resurfaced properly with a polished finish you should use copper coat on your metal gaskets if used. On a motor that has a standard finish surface it is best to use composite gaskets. My small block with a smooth finish and cometic tri-metal gaskets with copper coat also seeped until I got a good amount of heat in the motor and re-torqued them.

I never had this problem with Mr. gasket metal. but they are softer and squash more. But they do not withstand as much boost as cometic. We are now trying cometic with a wire insert in the head on a street motor. Same as the top fuel motor. Do not be afraid to use some sealant on metal gaskets. Moroso block seal is also needed on some applications

Looks to me by the pics as if your block was not prepped for metal gaskets. I would go to a good fe-lpro composite set on both sides . This would be the best and cheapest for you to correct the problem. If it was just coolant I would say block seal using your gaskets. But as stated you can see carbon from a combustion leak also.

Hope this info helps in sealing this up. Steve