Run it on the cleanest-burning fuel with the highest detergents you can find, get some synthetic oil in it - maybe 10w30, to "rinse" the motor out - and run it under load, at speed, as much as possible. Chances are that engine is filthy, in the fuel system and inside the motor. Blow-by may just be a result of clogged up rings and will probably reduce if you clean it up inside and get it tuned up right.
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'82 300CD
"Pearl", the very first turbo diesel 123 coupe
Totaled 11/23/18, rebuild in progress.
'85 300TD, "Artemis".
'78 300D euro, "Ol' Red", mostly retired.
'85 300D, "Gandalf".
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