My guess would be water in cooling system leaking by a leaky head gasket or a crack in the head or block casting. Yes, milky colored oil has water or coolant in it. The question is WHERE it's leaking in. Maybe try something like BARS Stop-Leak, simply pour it in the cooling system per the instructions.
My Super H was built at FARMALL in Rock Island about 3 months before I was born in 1954, I'll be 70 next spring and the cylinder head has NEVER been off that engine. The '51 M Dad bought new has had the head off twice when the engine was overhauled. It was the 2nd string fieldwork tractor, loader tractor, wore a 2M-E mounted picker every fall for over 20 years and 200+ acres per year, our 80 acres plus an additional 40 or 80 acres on rented ground plus another 120 acres at Grandpa's, He actually owned the picker. When the picker came off the M ground about 8000 bushels of earcorn for cattle feed.
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Today's Featured Article - Restoration Story: Fordson Major - by Anthony West. George bought his Fordson Major from a an implement sale about 18 years ago for £200.00 (UK). There is no known history regarding its origins or what service it had done, but the following work was undertaken alone to bring it up to show standard. From the engine number, it was found that this Major was produced late 1946. It was almost complete but had various parts that would definitely need replacing.
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