D7E head/gasket HELP!!!

So I bought my 7E a few years back with known issue of "water coming out of exhaust". Old heads cracked, bought 2 new heads from Regal, installed glow precomps, torqued to specs, removed pony for E-start, running fine for a weekend project the last couple of years without issue.

Past weekend(Saturday), hit the glows for a few seconds, spun decompressed for a couple of seconds, compressed, motor stopped like it hit a brick wall, figured the starter kicked out from batteries, tried it again and same thing(REALLY concerned at this point). Charged batteries(20 minutes), spun over without issue(much longer than it usually takes to crank) and it belched probably a half gallon of water out of the exhaust full of carbon/water/diesel, immediately shut down. Called my dad over from running the X. Figured it couldn't get much worse, crunk in less time, a little more water/smoking. Let it idle to come to temp, take for a spin on the high ground(where I can actually get to it to work on it if something major), push silt from the pond once a little more confident. Concerned maybe vandalism because never done this before and it has a rain cap on the exhaust. Finished working. Go get a tank of diesel. Come back an hour later and crank, a few ounces of water in exhaust.

The facts:
1. It's never done this before.
2. I am the ONLY driver, NEVER been run hot since new heads and always has water.
3. Always had antifreeze(and it hasn't been that cold anyway)
4. Installed new water PRESSURE gauge during rebuild. It NEVER registered ANYTHING until a couple of months ago.(thought that was weird) Then it would go to the top over time(yellow). Operators manual indicates that the temp gauge should be used only at the highest level of the pressure gauge reading since heat=pressure=higher boiling point.(makes sense I guess)
5. Water temp is always square in the middle of the green once up to temp.
6. Looked like some condensation on the dip stick(never there before) after running Saturday afternoon once it started. Oil still black(not milky)

Conclusion: water getting into cylinder.

Questions etc.:
I plan to remove all 4 glow plugs this weekend and spin to find which cylinder(hopefully only 1) has water in it since they are easier to remove than injectors/PC's/Ex manifold.
I seem to recall something in the manual/google that mentioned RE-torquing heads on a new tractor.(Which I HAVE NOT DONE, S$%^)(new heads same difference?)
I grew up in a shop and know how diesels work even though I'm no expert on a D339.

1. Have you guys ever seen this before?
2. Any chance the heads can just be RE-torqued?.... do they need to be?
3. PC's RE-torqued either?
4. Generally, odds of having to take the heads off AGAIN even though I KNOW this tractor has been treated well?

Thank you VERY much for you input. I just want to get "Ole Girl" back in action before something really breaks in the field.

Retorquing heads would be a good idea.
Seems your building pressure in the cooling system, remove radiator cap check for bubbles.
Just because you have a rain cap doesn't mean that water can't get in. Check to see that it is aligned right and sealing.
If all that checks out I'd suspect crack/s in either the head/s (not very likely with your new heads) or block. If liner seals were leaking you'd have significant water in the pan.
Another leak candidate could be a pin hole in a cylinder liner. I would not suspect any problem with your new pre-combustion chambers.

Water director seals? Sometimes they can get dislocated setting the heads on and get cut or damaged and leak.

just water or antifreeze?

I wouldn't rule out the combustion chambers. Certainly would remove them to check before pulling the head.
If you cannot stop it by retorqueing the head and resealing the PC chambers, you might be successful using a block sealer product. If you are getting oil and carbon in the radiator, I would just go ahead and pull the head at that point instead of taking a chance on plugging up the radiator.

Did you check liner protrusion before you put the new heads on?

Thanks all that replied.

OM, checking for bubbles in the radiator is sketchy with the design of that cast baffle under the lid. There is limited visibility to really see what is going on. Unlike most other radiators, it's not just an open hole. No mass water in the oil pan.
I'm thinking re-torque as a 1st resort as well.

Rome K/G, that was my first suspicion. SORRY, I left that part out of my original post. The gasket set that I bought from Offroad EQ had those gaskets(more like fat o-rings) that were either too large or too small to fit the new heads(can’t remember now since it’s been a couple of years). I’ll have to look at the old heads/new gaskets(still got them) Because the old ones were the right size AND because the previous owner had recently done the heads before I purchased the machine(the reason they threw in the towel), I just reused the old(like new) ones. I KNOW THAT’s SHOTTY!! Don’t beat me up!

nomorejohndeere, I really can’t tell because of the mixture of diesel and carbon. It doesn’t really smell like antifreeze, but then again, the coolant isn’t emerald green either(really concentrated). But, with only letting the tractor sit for an hour before restarting and seeing more water(on a dry day AND after running a couple of hours) I know it didn’t get rain in it during the diesel pickup.

ccjersey, 10-4. No, I did not mic the protrusion BUT the book says 0.004-0.008 and that is believable because I know I ran my fingers across the top of them and that “felt” correct.

I’ll report back once I get into it this weekend.

Thanks again guys!!!