My 340 in my 66 developed issues :-(

Well, if it was that strong, Why mess with a good thing? To hear you extol the engine it sounds like an A-one combo.Too much more anything, may take it out of the realm of street-ability, and then the kids won't be willing to come along any more.
But I highly recommend to calculate the Scr, cuz this might happen again if the cylinder pressure is excessive.
And that combo looks to be pushing a lot of heat into the EGR port, and from there, it is cooking the oil under the intake,and probably cooking the carb too. Your manifolds/exhaust system are probably operating at their limit. I mean the evidence of the cooking is right there.
Ima thinking if you put any more power in her, you are gonna need some expensive supporting mods.

It is a nice combo and works well and I really don't need to but I want to..kinda impulsive I guess..
Yes, I did notice the cooking in that exhaust port in the manifold, it did look to be getting hot. My exhaust system sounds nice but where it hooks the exhaust manifold to the down pipe it goes into a small pipe and steps up to 2 1/2 for the rest of the system.. Kinda hard to explain, I'll take a picture..

As far as redoing the cam, I'd like it to pull longer and have a little more snap off the bottom. I'd have to say that after 5000 that 340 is done. I'd like it to pull hard to at least 55..