Severe blow-by would cause oil to travel through the valve cover vent on the drivers side and back into the intake.
Is your oil level low or anything? It would really take a lot of oil to do that. Is it possible you just over-oiled the K&N and it is accumulating at the bottom of the filter?
Also, if it really is blowing that much oil into the intake, your MAF sensor is going to be filthy I would assume, and your car is probably going to run like crap.