Blown head gasket

#1
Was just recently given a 2010 Corolla with 140k miles, in decent condition for free with one major mechanical issue that needs sorted out. The car burns oil and coolant, assuming it was a blown head gasket the previous owner (family member) took it to the dealership and with one look determined the block was cracked and it needed a new ($5900) engine in it. Not wanting to sink that money into it, I now have it.

There are no external leaks at all, but on first startup there is some blue smoke, then after 45 seconds there is a bit of white smoke. Following that it clears up and runs great. While it is burning off this oil / coolant it has a definite misfire - with a code reader I determined it was cylinder number 3. Removed spark plug, and found that it was covered in coolant.

After reinstalling the spark plug I needed to move the vehicle, as I went to turn the engine over it stopped immediately.. seems as though it was hydro locked.

Here is my questions:
1) Is it the head gasket? I've done multiple head gaskets before including a 1997 ford f150 that was a pain, how bad is it on the corolla?
2) Did I ruin the engine by turning it over? Worried that I might have bent a rod...
3) How did it blow the head gasket? It was reportedly never overheated.. The original owner takes fairly good care of their vehicles.

Thank you!

P.S.

It seems as though there is oil in the coolant, but can't really tell. It isn't foaming at all, but looks fairly dark. There is no coolant in the oil surprisingly.
 
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