smoking tailpipe

Hi i have a 1989 535i auto with 290k miles. my problem is it produces a decent amount of white smoke out the tail pipe. when i took my exhaust off to change my drive shaft i noticed a lot of water was leaking from it. also when the car is sitting idling water drips and pools under exhaust tips. and i get a code 1222. when i drove it the other day for 45 min i checked my oil and it was starting to look milky but i haven't lost any coolant or any other fluids everything is still full. but that was after it has been cold around 40-50 degree but when i drove it was around 75 degree not sure if that makes a difference. but usually i only drive the car a couple miles that was my first long distance trip since i changed the oil.



my question is should i be worried about the smoke?

smoking tailpipe