87 260e coolant problem
 

Ok, I have had my 260e for a long time with no problems. IT has somewhere over 200k miles. Recently, the coolant light has been coming on in the mornings so I constantly put in coolant. Sometimes every morning and sometimes every month. Today I got in a began driving and noticed my temp was 3/4 way to 120. I quickly pulled over because the coolant light had been on earlier but went off after a few minutes of running. I thought maybe it was low. I popped off the cap of the reclamation tank and a fountain of coolant went everywhere. The coolant was cold! Then, the temp went back to normal. Any idea what happened and what is going on?

You must have a leak somewhere if you keep on adding coolant. As to the coolant spilling over, my guess is air trapped in the system.

Do, or get it done, a pressure test on the cooling system.
Hope you don't have a head hasket gone. ;)

If your temperature guage indicated near 120 temp then why was the coolant cold?
That sounds like a stuck thermostat or a blockage that is stopping the hot coolant from circulating.
Am I wrong people?