You shouldn't have removed the four bolts in the center of the rear lift cover. They hold the hydraulic cylinder in place. I don't know if your TEA20 uses an O-ring or gaskets to seal the cylinder against the top cover but either way that connection has been disturbed and you really should have the cover off to be sure you reinstall the cylinder correctly or you will have a leak. The control valve will need to be disconnected from the top cover before you lift it off or you will break the control valve in the pump. If you don't have one already you should get a service book before you go much further.
I would drain that milky oil out and with the top cover off you will be able to do a really good cleaning.
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Today's Featured Article - Oil Bath Air Filters - by Chris Pratt. Some of us grew up thinking that an air filter was a paper thing that allowed air to pass while trapping dirt particles of a particles of a certain size. What a surprise to open up your first old tractor's air filter case and find a can that appears to be filled with the scrap metal swept from around a machine shop metal lathe. To top that off, you have a cup with oil in it ("why would you want to lubricate your carburetor?"). On closer examination (and some reading in a AC D-14 service manual), I found out that this is a pretty ingenious method of cleaning the air in the tractor's intake tract.
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