Coolant and water in the crankcase

Recently, my sister gave me her old car listed above (SOHC) to repair it for her. The symptoms? White smoke, lack of acceleration and coolant all over the engine. I agreed even though I am not into Fords (especially the ones they make overseas). I ended up replacing the primitive melted fuse box, the radiator (which was clearly acting like a sprinkler cooling off the over heated engine, albeit, externally!), The bypass coolant line to the intake manifold and the idle bypass valve. I managed to refurbish the.99 cents four spark plugs after finding their holes drenched with coolant and also did few other repairs here and there. Now unto the engine: Is it good or bad? I drained the oil through the drainage plug and (as I expected) collected the heavy coolant and water mix in the first bucket and the muddy brown coffee-like syrup in the second. But when I flushed the crankcase with fresh oil, I collected about 4 ounces of chocolate milk. What do I do now? I know I am going to take it a part step by step replacing what needs to be replaced. But can it be cleaned out before I begin taking the engine a part? I plan to stop where the problem stops (if it is a head gasket, then that's all I plan to do for now, but if it is more like cracked cylinder head or block, then I will proceed). Please advise, especially concerning the contaminated engine and how to clean out this coolant and oil mix (just add fresh oil until all runs clear? Or do I have to take it all apart and clean everything inside?)