If you have moved cylinder sleeves in an open deck motor you'd have coolant in a cylinder, tons of smoke, and probably bent rods. That only really happens with high horsepower which I don't think is your issue here since I think most of us followed your build. You are still on the stock fuel system and well within the boundaries of the "safe zone" in terms of power production as long as the tune is on point.
a leak out the side of your head is probably a result of overheating / head warp. You may get away with cleaning up the head at a machine shop and a new gasket but your starting point will be disassembly as some have already stated