1. Firstly, a small amount of steam out the exhaust is normal. For every litre of fuel burnt, a litre of water comes out (apparently), mostly as invisible vapour. When the engine and exhaust are cold, the water condenses inside the exhaust system, then as it warms up it evaporates and steam comes out. when it is fully warmed it doesn't condense and just comes out as invisible vapour. As to the bubbles, it does look like a BHG, combustion pressure means that combustion gases go into the cooling system, and work their way to the top and escape as steam pockets.
2. Some blowby is normal on any engine, but yours does seem excessive. How many k's has the engine done? It could be getting tired. BTW, worn comression rings = blowby, worn oil control rings = smoke on acceleration. An engine with one may not neccessarily have the other.
3. the bubbling at the back of the engine is localised boiling, possibly from exhaust gases getting in to the coolant, or a stuck thermostat or failed water pump (especially as the top hose is staying cold). If you are rebuilding the engine it's usually good practice to replace the thermostat and at least inspect the water pump (but i'd probably replace it to be on the safe side.)
Hope this helps.
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