Sounds like the headgasket to me.
If you do remove the head:
Make sure it gets taken to a competent machine shop where they should put a straight edge on it, pressure test it, surface the face flat etc.
Take the gasket with you, they should be able to tell you if that was the problem.
Keep in mind that if they vacuum test the valves and find a problem, thats where it can get pricey due to adjusting tappet clearence etc.
At a minimum make sure the face of the head gets milled!