Larry Bible is right
It happened to my 190e. I listened to larry Bible and it took 5 oil changes and filter changes to get all the water out. I had lots of water in my oil and after the 5th oil change it was pretty much all gone. If there is any more water left and you can't see, it will evaporate with heat. Go to Wal-mart and buy their supertech oil and filters. Buy 10W40. 10W30 is like water and your engine lifters will click bad with it. A filter is about $2 and their oil case go for about $12. Your total cost is less than $20. When you're done put a good brand filter and good oil. I used Quacker state. My oil after 3K miles is still 75% clear. If you need a container to hold all the drained oil everytime you change it, just go to Mcdonald and ask for their plastic container that cooking oil comes in it. Any other greasy fast food should have it.
1993 190E 2.6
Advanced Diesel Systems Test and Research Engineer