2004 A4 1.8L turbo, mil P301

Trouble code P0301 (#1 cyl misfire) just started today. Pull #1 coil, found covered with oil - #1 spark plug living in 2" of oil. Pulled #2 coil, also covered with oil - #2 spark plug in 1" of oil. #3 & #4 coils just very slight oil - respective plugs clean. Engine runs rough. Drained oil from engine, only 2.5 qts came out. Any ideas. Thank you in advance. mech