Weird Oil Question, maybe or I'm just dumb..
 

I guess this is the best place for my question, but water is supposed to separate from the oil when it milkshakes right? Well, this didnt separate, and it smells like chemicals... Any thought or is it a damn gasket failure or some junk? Not a mercedes so dont trip, I take care of my good cars. This is the severely neglected and potentially restorable Supra.

If the oil looks like a milkshake you have a blown head gasket or a cracked head. If you catch it real fast and change it/fix the problem the engine will be fine.

If its been sitting like that for awhile you are looking a complete rebuild.