You have a blown cylinder head gasket , water and oil are entering the cylinders through the gasket, get a manual on your model car before approaching a garage , you may find as I did that it is not all the dread they try to tell you it is , I have repaired a few with no mechanical knowledge prior.
Steam from the tailpipe, and water in the oil means you have a faulty head gasket. Not a good thing. The steam is the antifreeze/water coolant leaking into the heads (bad gasket) getting heated by the engine and coming out as steam. The water in the oil is the same deal, but it;s collecting in the oil so it isn't coming out of the tailpipe. You need a new head gasket. I promise.
Steam (White Smoke) coming from the tailpipe is the #1 indicator.
you put too much oil in, it is burning the oil.
cracked heads, water and oil are mixing
Water (condensation) is a normal condition with a cold engine as stated below, but not oil?? Perhaps a bad head gasket/cracked head/ or block Water coming out of the tailpipe is not uncommon. You will probably see on a lot of cars on humid days with water coming out of the tailpipe usually it goes away once your engine and exhausts have warmed up. Check out the links below for better explanation. It also depends on how old your truck is. Trucks with less than 1000 miles on them sometimes have an oily residue exit out of the tailpipe. During maunafacturing of exhaust pipes, lubricants are used to prevent rust. Check the oil with a blacklight because a dye is usually added to initial oil in the engine. If you have a diesel, then you may have oil coming from the engine, loosen the exhaust pipe from the turbocharger and look for signs of oil exiting the tailpipe. If the turbo is leaking oil you probably have worn bearings in it and possibe wheel hub replacement.
IT usally means that WATER is coming out of YOUR tailpipe wich is STEAM & running ruff is Because the smoke is coming from the DEAD cylinder because the head Gasket is blown(bad) {USALLY}
You've more than likely overheated the engine and cause a head to crack, or you've blown a head gasket and it's going out the tailpipe. Is there steam coming out of the tailpipe?
Get a oil change You may have a bad head gasket, or a cracked head, or both.
One of the symptoms of a blown head gasket for a Toyota Camry is excessive steam or coolant coming from the tailpipe. Engine oil mixing with the coolant and a miss in the engine are also symptoms of a blown head gasket.
condensation
your car may be leaking coolant into the engine, i.e your head gasket may be bad
What color? Blue- burning excessive oil - bad rings or valve Black - raw fuel - cylinder not firing - carb adjustment White - when engine is at normal operating temperature - steam bad head gasket?