Volkswagen Repair: 99 Passat w/ 1.8 turbo, coolant tank, head gasket

Question
My VW Passatt Wagon has a 1.8 turbo with a very weird situation. Just two weeks ago the hose to the coolant tank popped and the milk looking liquid(which I know is oil and water mixed) came out. Now here is the weird thing, the oil mixes with the coolant, but when i checked the oil system the next day the oil was its just changed clear brownish normal color. What i can't figure out is where is the oil cooler, and how do i go about trying to fix this.
I think that it is the head gasket, but wouldn't it be the other way around. Please give me some feedback or advise. Thank you.
Brandin

Answer
Brandin,
 If you are sure that oil is in the cooling system, then there's a strong chance that the head gasket is the problem.  It would not be unusual if you found water in the oil too.  Bottom line, I would NOT drive it anymore and get it looked at ASAP; this situation can lead to serious engine damage.
- Rick