I talked to the machine shop and have mostly good news. They cut about 5 thou off the heads and they are flat and smooth again so I am going to re-use them.
I asked them to cc the chambers as well as let me know what the previous install height was on the springs since I did not have this info from the original build by my old machine shop. Chambers were all between 44 and 45 cc. The disturbing thing was that the k-motion 750 springs were installed at 1.76 and tested at around 95 lb seat pressure. Way too low for the 218/212 hydraulic roller cam I am running. WTF? Why would my old machine shop install these springs at such a low seat pressure when I gave them the cam and lifter kit etc. still in the boxes with all the installation instructions?? Not happy about that at all. I was floating the valves for sure at high rpm. Anyway I have a plan to put everything back together now.
1. I am going to go ahead and pull the motor since I am only 11 bolts and 1 wire away from being able to remove it at this point. I have not pulled the heads on a motor while still in the car since 1985. No fun and my back hurts now. Way easier to work on it on the stand and I will have a better chance of getting everything right.
2. While motor is on the stand I will pull the pan and check the number 1 rod bearing at a minimum.
3. I am going to go to head studs this time. I did a lot of reading and that seems to be the way to go. Will follow recommended procedures and re-torque on the stand etc.
4. The new engine shop did a complete teardown, hot tank, freeze plugs, valve surface and lap, new seals, mill the surface, etc. on the heads. I read on here and had the shop install the spring height at 1.700 and check to be sure they had around 130 seat pressure as shown on the K-Motion website. I could have probably had them shim them a little more since my lift at the intake valve is .545 but I figure 130 lb is still way better than 95 lb seat pressure.
5. I am going with the .040 Cometic head gaskets this time instead of the .060. I caught the .040's on that sale Jegs had so they were cheap. This will raise my compression ratio from 9.1 to 9.5 which everyone says should be fine since I only run E85. I also read on here that since the .060's have more layers than the .040's they are easier to blow. I will be checking the piston to valve clearance to be safe as well as making sure my pushrods are still the correct length.
6. Lastly and most importantly I an going to dial back the boost and timing and address any fuel supply and tuning issues I may have so I do not have to go through this process again. This was my second blown head gasket in 2 years.
I am still amazed at all of the mistakes I have found in this motor that the "professionals" made 5 years ago when I originally had it built. Definitely going to continue to do my own work from here on out. I would have never figured out all of these issues without the knowledge on this board. Thanks.