That hose you blocked off is the bypass hose its purpose [or atleast one of them ] is to keep the water[coolant] from dead heading against the thremostat.look at the t-stat it opens in towards the motor with the hose blocked off the water builds up against the t-stat and will not let it open.you can either run a t-stat with 3 1/8 holes drilled in it to releive some water psi or do like you did and remove the guts.BUT you have to have some back psi in the system to help eliminate air pockets and bubbles.As for temps each motor will seek its on temps the majority of mine run rite at 190 and that is running hard[wot for miles].another thing to llok at is were you have the sender?it HAS to be in coolant FLOW not just in a touching coolant.[Fixed one of those about 3 weeks ago]Stan
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