Peugeot 106 got a peugeot 106 zest got warter under rocker cover and creamy gung and in the breather comeing from the rocker to the air filtter id did have a kn fltter on it and the breater comeing from the rocker cover was just hanging not connected to any think the oil is clean and the warter is clean but loseing some water it is a 1.1

SOURCE: cream gunge on oli rocker cover

That means water/moisture is in the lubricating system. A very common reason for this is the vehicle is not driven long enough to be hot enough to evaporate naturally occurring condensation. If you don't drive the vehicle alot and/or short trips . a good solution may be to switch to synthetic oil.

SOURCE: oily foam in rocker cover breather pipe

Bad news, at best it's a blown head gasket, could also be a cracked head.

Testimonial: "since there is NO evidence of water in oil at all the head gasket seems unlikely also head must be ok otherwise water would be evident"

SOURCE: i have got a peugeot 106 xl zest 3, i need the

jus go into halfords n say i need a bulb for ------- n they shud give u the rytone

SOURCE: oil cap and dipstick covered

Yes, it could be that a plugged up Positive Crankcase Ventilation (PCV) valve or engine crankcase breather (with filter) is the cause allowing moisture to condense in the crankcase. However, if the valve and breather are okay, a cylinder compression test should be done to verify that the cylinder head gasket is not leaking. Regardless, the engine oil should be drained and the engine flushed with clean oil and an appropriate crankcase flush additive. Entrained water in the oil (the creamy sludge) will damage engine bearings quickly.