A place for more technical discussions. Please make sure you post in the correct section on the site, this way it keeps the site tidy AND ensures you get a more relevant answer.
To answer your questions... the overflow tank does not return to level, there is a hissing when opening the radiator cap.
Head gasket or a cracked head (unlikely)
With the cost of gaskets and the work involved, getting the head faced to be sure that it is flat would be A Very Good Idea. You might get away without, or the new gasket may let go quickly.
You might as well make a week of it and service the valves, do the tappet clearances etc.
If it suddenly breaks, go back to the last thing that you did before it broke and start looking there
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