Having several 66 series IH tractors with the "melrose" wet sleeve engines (312/414/436/466) and did some research on the subject.
The cause was tiny air bubbles forming around the cylinders that would effectively drill a hole in the cylinder liner and leak antifreeze into the engine oil. No power loss or other issues just milky oil.
The fix was to add an additive called DCA4 and install a water filter. The filter cleaned out impurities and changed the water flow both of which reduced bubbles. DCA4 further aided in this effort.
Old fashion green anti-freeze is what you need to use plus an additive like DCA4.
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