hi guys, got a problem having trouble solving,
there is smoke coming from my oil breather pipe on my frst whilst the engine is running, as the engine gets warmer the smoking gets progressively worse and there is also alot of oil escaping from the k&n oil breather filter as you can see it bubbling out at running temperature. Ive recently had the breather filter off and cleaned it out and flushed it through but the problem persists and i am unsure why? the small black plastic cone part is attatched just before the breather which also contains some other sort of filter as far as i could see but all the other surrounding pipes joining to it seem to be dry and clear. so we ran the engine until it was warm and there was oil bubbling from the filter and disconnected the hose from the rocker cover to the breather filter, at first there was a little oil that dripped out but not enough to be pushing through to the breather that quickly,so we left it off whilst running and the smoke was coming from here so it seems the smoke and oil are coming from two different places?

oil - like i say iv had all of the surrounding pipes from the breather off and they seem dry and iv just cleaned the actual breather filter so it narrows it down to the small cone shaped filter - possibly already filled with oil within its filter but where did it come from? is this cone section needed?

smoke - Can anyone tell me why there is a lot of smoke coming from the rocker cover? upon removing the pipe from rocker cover to breather filter and temporarily plugging it up with my finger the smoke that poured out of the exhaust was unreal! i removed my finger and it continued to smoke excessively until i turned off the engine and then when i turned it back on and it wasnt as bad but was still smoking as before. there is also a slight popping noise within the exhaust at the back when the smoking gets heavy, and the engine idles a bit jerky but its previous owner had different cams fitted and iv been told this creates lumpy idling. The car also has a t3 on it but i am unsure of any adjustments that have been made since these modifications and the car still seems to run standard boost (around 5psi i think).

Iv just changed the oil but used an engine flush within the process and when the oil came out upon stirring it it did have a whitish tint to it but we was unsure if this was the engine flush as it was a very thin watery type of flush. the temp rises and falls as normal it takes a fair amount of time to get hot and then the fans kick in which cool it down as they should, there are no other signs of head gasket failiure that i am aware of so am pretty baffled, any ideas?
I have also just changed the spark plugs and leads but this solved nothing.
advice will be very much appreciated, thanks.

Sam