Detroit 60 series using water
#3
Is it an EGR version with a VG turbo? Not sure about those on the Detroit, but many VG turbos are water cooled. If you are not finding water/coolant in engine oil, and the water/coolant use is inconsistent, I would take a look at the turbo if it is a VG one.
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#4
You put on the Jake-brakes, then you observe steam coming out the exhaust. I would say a water jacket is leaking into the exhaust manifold when the Jakes are on. As you watch this tutorial video, it mentions the power cycle is cancelled out and compression is released into the exhaust manifold. This is the point when coolant mixes with the exhaust due to a sealant leak in the engine's water passage system.
http://www.youtube.com/watch?v=7FSkNSOeTWM
There's a special tool that pressurizes the coolant radiator with pressurized air. If I were the mechanic, I'd remove the exhaust manifold, pressurize the coolant passages with maybe 30 psi of air, then insert a plumber's inspection video camera to isolate where the coolant leak enters the exhaust system as the Jakes are activated.
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