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Originally Posted by TimMullen
That is the thermostat. The thermostat is part of the "sandwich adapter" and the mechanism that controls it is contained under the "extra" bolt (looks like a plug) on the plate. The red arrow points to it in the diagram below. For those that don't know - the adapter is where the oil filter screws onto, and the oil hoses attach.
It's possible that you thermostat isn't working quite right, or that you gauge is off a bit and reading slightly low. You might want to check your gauge by inserting the sensor into a pot of boiling water to measure the temperature (use a good thermometer to measure the temperature of the water). 
In the case of the oil/water heat exchanger (cooler) cars, everything outside of the blue "circled" area is replaced by the few parts inside the blue area. The heat exchanger hoses are connected to the "heater" connections on the side of the engine (the head, if I remember). On our cars, the bypass hose is used instead to connect the coolant circuit instead. |
Interesting that the oil return is in the left hand sill while the hot coolant water travels to the radiator on that side.