Milky goo seen on oil cap and bubbles in the radiator

It all began when temperature light on the dash started glowing after travelling just 5 kms. Only a week earlier I had checked coolant and it was showing within limits. I took it straight to mechanic who carried out a pressure test on coolant and in a haste declared that water pump has leaked.

I was there in the garage and there was no oozing coolant from anywhere except for a two to three droplets along with some oil under the engine. I could see as the car was mounted up on the lift.

Hesitantly I bought a new water pump and took it to a different mechanic as the previous one was too busy. The new mechanic opened the oil cap and showed me the milky goo on the gap. He also carried pressure test on the coolant. New diagnosis was that the head gasket has leakage and instead of coolant leaking externally it is entering the engine via head gasket. So the mechanic said the best solution is to sell the car as early as possible as the head gasket repair will cost $3,000.00 or more. I left the garage with a mind to sell the car as soon as possible.

I did observation on the coolant reservoir and found tiny bubbles and frothy layer when engine was revved up. I also found a lot of oil traces near the engine head (see pictures).

After driving about 100 km over the weekend I saw that coolant levels have gone down marginally. Both readings taken on cold engine.

Can someone help me ascertain if it’s the leaking water pump or the leaking head gasket or is it both that is dropping the coolant levels? What is the way out of my situation.