http://www.go2itnetwork.com/oil-caramel/

Water loss, car oil caramel colour?
When I bought the car the tempreture guage didn’t work. I purchased a new one and it still didn’t work, I pulled the fuse in and out and now its working again.
The car seems to lag a bit for the first few hundred revs in first and second gear (when accelorating it goes forward but doesn’t seem to have any power at all, then really speeds up after a certain rev, but you can feel a like jerk or something that you know it shouldn’t be normal. My clutch’s biting point is at the top, is this the problem?
My car has lost about half an inch of water since I last checked around a week ago when i did the service (included oil change), and the oil colour is a bit caramel in colour in my opinion.
Is my head gasket going? What else could be the problem?
Car runs between 75-90 degrees
1997 Golf Mk4 1.6
If the oil looks cloudy and kinda like chocolate milk then you have a blown headgasket or crack in your block.
Betty’s Party Caramel-Coated Popcorn Recipe