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White smoke in the morning on first start up (denser looking than usual vapor in exhaust) and that milkshake in place of oil all point to leaky head gasket and coolant getting into the oil.
Sorry, but you should start going down that diagnostics path: compression test will usually pinpoint the problem.
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2012 135i Mods: air scoops, CP, K&N filter, PS1, ADE FMIC, BMW PE, JB4, 1M front body, full M3 suspension front and rear, M3 brakes front and rear, M3 rear subframe and LSD
Owned so far: 88 M3 x 2, 95 325is, 95 M3 x 2, 06 Mini Cooper S, 08 335 xi, 09 Z4 35i, 01 M3, 12 135i
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