Why would there be water in the engine block?

Answer

If your oil looks watery and milky, you more than likely have a blown head.

Get it checked -- you actually could do more damage to your car engine. Some cars also get a mositure build up in the oil that might be white or yellowish color if you don't get the engine warmed up all the way in the morning causing condensation to build up on the underside of the oil cap.

More than likely it is a head gasket, the type of vehicle and mileage would be helpful, however, some times to keep an older vehicle running for a short while, would be to loosen the radiator cap, lets the pressure off, but u definitly have a cracked head, block or blown headgasket.