It's doubtful anything is wrong with the motor.
They're pretty much bulletproof.
I seem to recall only one post ever about a head gasket leaking or going bad.
Pretty sure there is a simple explanation for what you observe, pictures sure would help.
My recommendation would be to avoid deep inspections that involve more tearing into the motor and simply ride the bike until such time where a problem will become more easily identified.
Moisture in the exhaust is proper since combustion produces water.
There are drain holes in the heads to allow water to drain from the spark plug recesses. Make sure they are all open, allowing flow.
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This is the way I'm going with it. I put a hotter plug in to match it back to OEM and thats the end of it. From here, I just need to get the radiator cap to seat right. I made the mistake of not removing the set screw. Really, who puts a set screw on a radiator? I'm playing with the tabs and carefully reshaping the neck of the radiator. My pingle is on back order, so aside from that, ready to go. Thanks again for all of the help.