Radiator is losing water

I have a 1996 Mustang Cobra SVT DOHC which keeps losing water from the rad. I know it goes straight out the back passenger side, making me suspect a head gasket. Upon further poking around, I see the oil has a bit of water in it and a bit on the milky side. A friend suggested a possible cracked block. ( I hope that's not it) !!!! My question beyond that is... will a compression test be able to tell me if it's a cracked block??? Before I drop top dollars into a complete head gasket change.

Compression Test may help you out. Had a car that was doing the same thing and replaced the head gasket, but it blew it again. Just hope that either the block or the head is not warped

Either way you will need to tear down the motor. If the engine has enough miles on it that you've blown a head gasket it probably needs to be rebuild it anyway. To check for a cracked block you will need to have the block magnafluxed, that is unless the crack is obvious.
Somebody mentioned warped heads. That is a possibility. Any descent machine shop can check the heads for runout from one end to the other

Also if your engine is turning your oil into chocolate milk it will have a problem with overheating amongst other things. You have to realize, that mess is being pumped throughout your entire engine. So just replacing the head gaskets may not be enough. You still have that mess in all your oil and water passages. Personally I would tear it down take the block to a machine shop and have it vat dipped and then rebuild it.

If your leaning into the foot pedal to where your blowing head gaskets and you decide to rebuild the motor you may want to have the block machined and have wire inserted around the pistons. This requires a special felpro gasket. But when you torqe down the head bolts the wire digs into the gasket material and really seals up the cylenders. Problem solved.

But that's just me.

Have a great day.

KM