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been studying your post for a while now,there seem to be a lot of damage to head and valves and block,if the valve timing was wrong it would show up as soon as you started it,so i think you can rule that out seeing as you have double checked the timing,it looks like the whole barrel,piston, head has been subjected to a whole lot of pressure.
heres the scenario, your riding your bike at x mph and suddenly one of your cylinders induces a significant volume of engine coolant ,as water cant be compressed it puts enormous pressure on the con rod bending it(ive seen it on cars)and in turn totaly distroying piston and head,that would account for the steam out of exhaust
just a possibility
andy
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