My guess is over cranking. There is no oil
cooler on this model. I have to heat the glow plugs for 10 seconds, longer if really cold, before cranking. I never crank more than 5 seconds, then stop, wait a minute, hold the glow plug
switch for another 10 seconds, then crank for 5.
Change the oil and recheck it, drain again if necessary to get the water
out of the oil. Keep changing the oil until the water
is All gone.