Just put in an autometer temp gauge, got a couple questions.

That sounds about right. I have an AutoMeter mechanical water-temp guage in my cobra. It will go to about 212 and then cool down to 200. I have the stock radiator and fan, 195 thermostat, water pump, etc. The factory guage is why I went with the mechanical. The factory guage was always reading high, so I thought and I didn't trust it. Anyways, the factory sending unit is just completing a ground. They can be made to read anything. The mechanical guage is the best way to get an accurate temp reading. It sounds like your fine. If you had a stock termostat it would be doing the same thing as my cobra (which is norm).