KA24DE - Oil pooling on top of pistons

[LV240SX]

Hello, I recently bought a 1991 240SX with a stock KA24DE with a blown head gasket.

Leakdown test confirmed cylinder 4 had compression leaking into the cooling system with 25% leak while the rest were in the 7%-14% leakage range.

A compression test on cylinder 4 showed it had around 95 psi while cylinders 1+2+3 had around 165ish on a cold engine.

I had a machine shop check it out was told it would only need a resurface, valve/seat grind, and new seals so I had them do it.

So I install the head and car started up and idled great. Took it for a drive around the block and when I got back my cousin said it gave off a little puff of bluish gray smoke when
I took off and then again when I got to the corner and stopped and took off again. Pulled it into the garage and it had a barely visibly mostly grayish smoke which got worse when
I gave it a little gas and let off.

Took out the spark plugs and the plugs looked like the car was running a little rich and I happened to look down into the cylinders and saw that cylinder 1,2, and 4 have a bit of oil pooled
on top of the piston, #2 had the most, while 3 looked fine. I did a compression test while my cousin drove home to get his leakdown tester and got 170 psi on cyl 1 180 psi on cyl 2 165 psi cyl 3 and 170 psi cyl 4.

Leakdown numbers are 3% cyl 1 9% cyl 2 14% cyl 3 and 5% cyl 4. I could only hear a slight hiss out of the dipstick tube loudest being in cyl 3. No pressure leaking into intake, exhaust, that I could hear and no bubbling from the radiator.

After the leakdown testing I looked into the cylinders and now 3 also has some oil on top of the piston but it is the least out of the four.

I am kinda doubting its the valve seals since they were replaced by a machine shop that a few friends of mine have been using for years and have never had a problem with but I do realize its still a possibility.

I would appreciate any suggestions on what I could try next to figure out what is wrong with the engine or any ideas as to what might be causing my problem. Any help is greatly appreciated.

[PapaSmurf2k3]

Yeah I would think either valve seals or bad valve cover gasket that is allowing oil to go down into the spark plug holes.... but usually the spark plugs keep the oil out, and you'd think you would have noticed oil all over the plugs when you pulled them.

[LV240SX]

Yeah I would think either valve seals or bad valve cover gasket that is allowing oil to go down into the spark plug holes.... but usually the spark plugs keep the oil out, and you'd think you would have noticed oil all over the plugs when you pulled them.

Aside from the spark plugs looking like the engine was running a bit rich they were dry. I will call the machine shop as well when they open today and see if they know what I could try to do as far as diagnosing.

Engine idles very smooth at about 800 rpm and feels great when driving. Probably wouldn't have noticed the smoke until it got worse of something went wrong with the engine if my cousin hadn't been there.