RE: Engine gets really hot
Did you state that your calculated compression ratio was 20:1? That is what I gleaned from the info. That sounds way to high for a model Diesel engine, but more inline with what full size Diesel engines utilize.
Just curious.
I do agree that regearing would seem appropriate, but if you are overheating at the present gear ratio, mixture or compression ratio would appear to need adjustment.
I am surprised at the low oil content in your fuel. I'm an old plain bearing, airplane, Diesel flyer from decades ago. I'm sure that the new ball bearing engines would use much less oil, still - 16% seems low. I guess it depends upon the type of oil that you are using too.
That sounds like a fun hobby.
Ed Cregger