340 Duster oil looks milky

Drain the oil completely.
Fill the coolant to full.
Pressure test the system.
That will show any leaks, be it intake manifold, head gasket, cracks etc...

Leave the oil pan bolt off and look for coolant dripping from the pan while system is pressurized.

This^^^^^^ Also if you get no coolant out of the pan, I would go ahead and do an oil change on it. That may well fix it. And as for the sizzling in the pan, oil can get moisture trapped in it from the air literally overnight so that tells you not one damn thing. It does not look separated to me in the container. That's a good sign.