OK----I stand corrected--there probably would never be any condensation of water vapor as the only place it could come from would be a by product of combustion---and all the cars are electric now???
If your crankcase isn't properly vented and somewhere the
oil reach boiling point of h20, you will get milkyness mucccc in you crankcase----then down the road, bearing problems, rusty cylinder walls ,etc--
Its your choice-----try mixing water and
oil and then lubercationg something--oh, thats right, water and
oil don't mix!!!!!!!
The oil will probably be aprox 50* hotter on the bottom of the pistons and especially on those engines that we spray the piston bottomside to cool it.(common in many hiper/race engines these days)
The temperature you read on your guage will of course be the temp of the oil at that location in your system and not necessarily the temp at its highest value.