coolant in upper intake

Just installed a running used motor into my car. I fired it up and saw white smoke and saw milkshake oil. Assumed it was the HG. Well started the tear down today.

WHen I pulled my intake off today, there was coolant that poured out of my upper. I then proceeded to pull the TB and EGR unit off and found water between the EGR and the intake. There was moisture on the bottom part of the EGR spacer. Maybe this is how the coolant got in there. Sucked it in when the coolant was flowing through the EGR spacer (somehow--isn't that a closed system?)

Isn't the EGR a closed system? How would water entering the EGR spacer get into the intake tract? Others have suggested a bad gasket, but how?