X2 on pulling the engine vs. doing gaskets in the truck. I replaced the gaskets once, and it really sucked to have to do that kind of detailed work in the engine bay. That set of gaskets failed a year or so later and I pulled the whole engine and had it rebuilt as a 383 with aluminum heads and intake. I have since pulled the engine a couple more times and replaced the engine in my 88 K5 as well.
Pull all of your spark plugs, one by one, and check for one that is different from the others. When it gets bad enough, you will have coolant flow out of the spark plug hole.
In my 88, I installed a GM crate engine that was the same specs as the factory engine. It was about $2,000. It runs great and has a 36k mile/3 year warranty.
A rebuild is great, if you can find a good engine guy. I had a few not so hot builds. The 383 actually ran well over 100k miles, but eventually lost a head gasket again. The block wasn't decked when it was rebuilt from a 350 to a 383, after having head gasket failures. That was the story of my new engine builder. He built me a 406 sbc with a scat 9000 cast crank and scat rods. 27k miles later, the thrust bearings went out on the crank. This time I used the best friend of a mechanic that works in my uncle's auto shop. The guy is really into details. His work has been good, but bad work from the guy who ported my heads previously, caused the engine to use oil. I pulled then engine again and had new heads put on, this time with mild porting or blending. That was $2200 down the drain for the old set of heads and another $1500 or so for new bare heads, porting, reassembling the top end and the misc. stuff for me to reinstall it.
IF, you can find a good builder, a rebuild would be the lowest cost. You could start with a used engine and have it ready to go, or ask the builder if they have the block and other parts to build what you want. The shops around here are not fast. The friend of a friend took a couple months to do the full build on my block. He was busy and he also had a new forged crank sent out to be trued and re heat treated to ensure perfect specs as they aren't always that great out of the box.
The GM crate engine was a great price for a new engine and it was fast and easy. The 406 sbc is fun when I mash the skinny pedal with double the power of the 350, but it has been a headache and build like it from scratch would cost easily 3x what the new gutless crate engine cost.
When my K5 was smoking a lot and started to use coolant, I just beat on it more, kind of hoping I would be forced to pull that pos engine (150k miles) and put a new one in it. Well, the head gasket let go when my DD 79 C20 was torn down and getting the 406 build. I owned to Chevy trucks but had to drive my grandfather's Toyota pickup to work.
