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Water in the oil pan ( looks milky or creamy on the dipstick ) is indicative of a blown head gasket. If your head gasket is blown you may have warped the head, especially if the vehicle was overheated. The fix is to remove the head(s) and take it ( or them ) to a automotive machine shop to be inspected and possibly milled. While the shop is at it they should inspect the valves and replace any that are bad. When you get the head back you will need to reinstall it with new gaskets. This is a good time to replace your timing belt or chain ( and tensioners ) since you will have the thing apart anyway. If you continue to run the engine in this condition you will do serious harm to the engine.

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