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Boat Repair/Water in oil and freeze plug popped out

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Question
I have 2001 Bayliner with a 4.3 190 hp mercruiser. I neglected to winterize and when I opened the boat this spring I did an oil change and noticed it was brown and milky. While looking around the bilge area I noticed a freeze plug. It came from the left side of engine. No visual damage to block and no other fluids on the floor under the engine. I had a machanic/friend do a visual inspection of the engine while in my driveway. He didn't pressure check the engine (didn't bring all his equipment over). He said he will know more when he takes it apart, however he really beleives that block is NOT cracked. All the oil has been drained and the oil filter has been removed. His suggestion (again without taking it apart yet) is probably going to involve buying a complete cylinder head gasket kit and replacing all those parts, having the heads removed and machined, replacing the thermostat, installing a new freeze plug, and completing the oil change and do a complete tune up.

Does this sound like a resonable/likely solution to my problem?

Thanks,
Rich

Answer
Ok where is what to do ....  next time winterize it....lol.....   do what ever you have to to reinstall the freeze plug...  fill with fresh oil...crank engine over a few seconds.. inspect the oil... if milky  change oil again... do that untill the oil is fresh .... there is no need to replace the head gasket...the freeze plug did what it was designed to do...replace the dist. cap.  change your lower unit oil  and have a good year...

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