Blown head gasket?
Failed head gaskets are a problem in the automotive industries that mechanics and customers are faced with everyday. Although this situation is a bummer, there is no need to throw the baby out with the bath water.
The cylinder head should be pressure tested, checked for straightness, and it should be vacuum tested to ensure all valves are seating in the cylinder head.
If the cylinder head is straight, pulls vacuum and is not cracked your in good shape. A quick resurface, to create a true mating surface for the block, a set of head bolts, and head gasket will get you back on the road.
Cracked cylinder head pose more of a problem. Some places weld and repair cracks, but the truth is a new cylinder head should be purchased.
Cylinder heads that do not meet minimum thickness can be reinstalled, once resurfaced, with a shim gasket. A shim gasket adds, if you will, metal to the head that has been removed when machined.
All in all, nobody wants a problem with their engine, but a blown head gasket is better than a connecting rod out the side of the block. The biggest issue that needs to be address is why the head gasket blew. If the underlying problem, whether it is a bad thermostat, leaking water pump or defective gasket is not addressed, the gasket will blow again.