You're putting one and one together and coming up with three. Just because the needle on your gauge goes to the right peg when you turn off the switch doesn't mean the gauge is bad. Those are "balanced" gauges as I recall; they don't necessarily return to zero because there's no spring on the needle.
You said you "burped" the engine. The fact that you (presumably) weren't seriously seriously scalded tells me the engine was WAY low on coolant. Are you sure it is FULL of coolant now? You need to get all the air out of the engine. This may take several iterations of topping off the radiator and driving it before all the air has been worked out.
It doesn't sound to me like there was a problem with the original thermostat. An engine with a 195 degree thermostat SHOULD run around 210. In fact, if it never gets any hotter than that it could indicate a coolant leak (because water boils at 212 at atmospheric pressure). Hmm, you say you replaced the intake manifold gaskets; was there a leak?
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Today's Featured Article - Talk of the Town: The Saga of Grandpa's Tractor - by The following saga is from the Tractor Talk Discussion Forum. Someone. The saga starts with the following message: Hey guys I have a decision to make. I know what you all will probably suggest and it will probably agree with me way down inside, but here it is. I have a picture blown up and framed in my "tractor room" of a Farmall M. It was my Grandpa's tractor, of which whom I never got to meet. He froze to death getting this tractor out of the barn to pull a truck out of the ditch before I was born. Anyway my dad and aunt had to sell it at the auction,
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