Well I pulled the cooler off and found the leak. The surface where the filter bolts on is pitted and corroded away. Dealer wants 180 for the part so I'm just going to eliminate the cooler for the time being.

 

If this problem is the piece sandwiched between the block and filter there are probably many aftermarket parts equal to the task. I'm thinking Moroso, Canton Racing Products et al.

 

Sounds like the shops in your area needed work... Good on you for doing your own research and finding the real problem!
Check Parts Guy Ed for price. And keep in mind, even $200 for a new cooler is a WHOLE LOT cheaper than a new head or head gasket....

 

Ok so I got the cooler fixed so its not leaking anymore. I cleaned everything up in the area it was leaking. Started the truck up and after a few min it started smoking so i crawled under it and watched it until I seen the oil. I swear it looks like its leaking out of the exhaust manifold studs. First and very last bolt on the drivers side. The smoke coming out is a mixture of white and blue. smells like oil though. While the truck was running and smoking i took a look back at the exhaust and while it was smoking there was a little bit of water dripping out too. Am I still looking at the head gasket? Is there some kind of temporary fix for it? Every mechanic looks at it for about 2 seconds and says well I bet its the head gasket. I dont want to bet 2 grand that its the gasket.

 

From everything you've observed and repaired you've not yet done a leak down test of the cooling system which should tell you almost immediately whether the head gaskets are the problem here.

There does come a time finding a trustworthy mechanic is the last and only option---without a proper diagnosis you might be at risk doing more damage.

I hope its not too severe but more and more its sounding like a blown head gasket.