I was going to say anti freeze got in since it's milky and used to happen on my chevy v8 when one of the two head gaskets failed and you get that milky crap under the valve cover and no oil pressure as more and more coolant mixes w/ the oil. Once time when one side failed I would start cold w/ 40 lbs oil pressure and once I go to work it would be down towards 5 lbs I would shut it off and let it cool off and oil thicken til I could get home and take the heads off for new gasket and get all of the milky crud out of the engine... I sure don't miss that. Saws much smaller, cheaper, and simpler to deal with!
I wouldn't have guessed looking at the picture w/o reading the rest of the thread -- once someone said what is that milky stuff and your picture of the lower half I immediately thought anti freeze in oil.