Smoke = New seals forming in place????? Is that a joke?
It's possible you've got cleaning solvents and lubricants which poured down the engine and head in the repair process burning off... Really there shouldn't be more than a mild 20 or 30 minute drive on the highway wouldn't burn off.
Otherwise.. You've got an exhaust leak.
86 ft lbs on studs? What brand, what lube, and sis you read the directions? That number's lower than it should be for ARP studs and too high for ARP or Toyota head bolts.
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