I have heard of that being done on the old two-stroke Detroits....but, that is from the Barney Rebel era.But, doesn't that grit have the very-real potential to make it into every bearing on the engine? I mean, even using a pop bottle and sand paper is more dignified than THAT! Yikes!
If it is truly oil-blue at start up, it needs valve stem seals. If you replaced the valve stem seals (does not sound as though you did), you may have damaged one or more with careless installation. If so, it will probably get worse.
...BTW your Bieber avatar is awesome.-Malone