water in the oil

Echoing others, I'd start by draining the oil. Water is a terrible lubricant...
With the oil pan drained, and the plug still out, do the pressure test. You should get a trickle of coolant out the drain plug if there is indeed a leak.
Like Rusty said, you may get lucky and see the coolant with the valve covers off and a close eye looking into the valley. It should puddle up pretty good around the lifters if it's the main coolant passage at the head. If not, it could be around the timing cover or water pump - but you said you did rockers, which wouldn't require removing the timing cover? If you didn't remove the timing cover, I wouldn't suspect it's your cause...

Depending on how much water got into the oil, ID be worried about the lifters. Entrapped water likes to eat steel. While the intake is off, it might be good to at least pump them in some clean oil... Or a soak in acetone followed by the oil pump up. I wouldn't get fixated on it, but it's only a few extra minutes while it's apart. Hydraulic lifters are finicky at best, better to not give them an excuse to misbehave.