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I'd bet that your cylinder head is warped. Period. Your history of the car's problems is very similar to what happened to mine in the summer of 2008, except that mine started with a split heater control valve spewing out the coolant instead of a stuck thermostat. But the rest is almost the same: overheat incident, replace coolant, keep driving car, slowly cooling system problems develop, car drinks coolant, overheating occurs again, etc.
In any case, by the second overheat, you almost certainly have a warped head. DON'T DRIVE THE CAR! It will just make it get worse until more serious damage occurs. For example, your turbo housing does not like having oil in the water passages, or water in the oil passages. And, excess heat in the engine will only further warp and distort things until the engine seizes. Get the idea?
The good news is that fixing a warped head on a B230 is pretty easy and not really very expensive, unless you buy a new head from the dealer ($2000+). If you are very careful about what you do and what you reuse, and shop carefully, you can easily do it for under $500. And, if you need to get a "new" used head from a junkyard, you can still manage the whole thing for under $650.
There is an entry in the FAQ about cylinder head replacement, and lots of us here have done it, so you will have lotsa help and encouragement. And the results can be astonishing: When mine was apart the last time, and the head was at the machine shop, I had them put new valve seals on, do the valve seats, and I set the clearances when I put it all back together. It runs better now than it has ever before. Purrs like a kitten, yet leaps like a tiger when I stomp on the pedal.
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1955 Human, Scott; 1991 745 Turbo, Brunhilde; 1990 745GL, Snuggle Bunny
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