Cooling Issue

Under steady state conditions you shouldn't be seeing the water temp going up and down.The stat just does not work that fast! What I would do is grab an old stat and cut everything off it so that you are left with just the restrictor. Install that and roadtest it.

This test is next on the list. While driving it yesterday, I noticed the temperature swings even after 30 mins of driving. It would climb to 220, then drop down to 190 very quickly and stay there for a while before climbing quickly to 210-220-ish and back down. I'm suspecting an issue with the thermostat.