it has a very high egt (up to 1750°F)
Thats about 950C, which should have the manifold glowing yellowy orange!
That IS hot, are you sure the gauge isn't telling lies?
There isn't a spark plug hole to drop a pencil down is there.
You could remove the injector closest to the tranny and drop a long stick down the prechamber hole and rotate the crank until the stick is at it's highest point. As such you would with a pencil through a spark plug hole. You just need something thinner and a new heat shield to put the injector back in.
The pistons 1&4 and 2&3 move together.
Eddy, that is what is being recommended, only using a valve. Let the valve drop onto the piston (near TDC!) and measure the valve to determine tdc.
GTD:
IIRC, It has been measured that the gasser flywheel marks are about 5 degrees different from the diesel flywheel marks. I do not have a gas one to compare to, so I can't confirm that, but 5 degrees may be enough to cause you issues, in at least one case it was the suspected cause of (repeated) valve piston contact.
I agree, start by confirming TDC, then double check the cam and IP timing to the crank. However, I am not certain that this problem would give you white smoke, and in fact I think that timed by ear, or trying multiple timing points should have resolved the white smoke even if the cam/crank timing was out a little.
I'll be paying attention to what you find, so please do update us when you find a problem/solution.
Eddy, that is what is being recommended, only using a valve. Let the valve drop onto the piston (near TDC!) and measure the valve to determine tdc.
Yes, i know that's what is being proposed. I just find it much easier to remove an injector than a valve. That's all i was saying. But i suppose a valve would be much more precise as it is straight on to the piston face.
I'm one of those "do it cheap & easy ... c'mon it's a vw" kind of guys. But then again, my build DID throw a rod so

there is something to be said there. And i think it is, "don't listen to smokey eddy. he's a moron."
ps. I'd also be terrified of being 180 degrees WRONG and losing the valve into the cylinder. What a disaster that would be...
No need to remove a valve - to "drop" a valve you simply rotate the camshaft. Works just like a piston stop...
No need to remove a valve - to "drop" a valve you simply rotate the camshaft. Works just like a piston stop... 
Nice, I wish I'd known/thought of that before. Oh well. Thank you for the hint.