Hello guys am new here and having problems with my audi tt coupe 2001. I noticed a thick blue/white smoke on my way home, but then it stopped. Today i started the engine and the smoke came out again, and its also leaking oil from the exhaust.

I checked the spark plugs and they are dry and clean but the oil level has dropped a bit.

Is it a turbo or the coolant problem? The funny bit is the coolant is at the same maximum level.

Ok guys this is what i have just discovered, the exhaust is milky now. whats happening?

 

Most likely the Piston rings have worn out.. do a compression test and that will tell you. The exhaust being white, means it's steam that it's burning in the combustion chamber, you may have a problem, but start small..

Get a engine compression tool from autozone, detatch the fuel line or coil, and run the engine over if you have low compression the rings are probably shot, or your valves are worn...

 

Before you go nuts on that, disconnect the turbo outlet pipe (coming off the compressor side, leading to the intercooler, and see how much oil is in it. K03 (stock) turbos are known for shaft seal failure and bleeding oil into the intake piping, where it gets burned in the engine. With the year of your car, you very likely are over 100k miles. While that's not a hard-and-fast number for turbo failure, it definitely puts you in the window. If the turbo has failed this way (more than a teaspoon of oil in the outlet pipe), be sure to get a quality replacement turbo from a shop that specializes in these cars, like ringer-racing.com (owned by a forum member here, incidentally). eBay turbos will guarantee a near-future re-purchase of yet another turbo.