Mine had this problem, running very hot at times. Once it finally died, I converted it to a M-TDI. In the process I had decided to modify the old thermostat and add a second oil cooler(air). My thermostat had a failing rubber seal around the moving part, and when I pulled the rubber off, I found it had a bunch of small holes, which is something I wanted to allow more flow. I also worried about the block off plate maybe not closing the recirc port on the block, or maybe the spring for the plate being too strong. So I took the plate and spring off, put on a much weaker spring and turned the plate around so it would close sooner, riveting it in place with a washer. The TDI ran much cooler, maybe too cool in winter. So while working on it recently, I decided to buy a new thermostat to get rid of the extra flow. I got an 87*C. I put it in, and on a short test drive, the temp got up to 230 on a cool day. The radiator was cold. I took it out, put it in a pan along with my old stat and one out of a 1.8 that's in my garage. My old one (87*C also) started opening at 165*F or so, maybe that's why it ran cold, but both of the other ones opened where they are supposed to. I reversed the plate on the new one and replaced the spring, drilled a couple small holes to make filling easier, and put it in. Now it runs fine, temp between 180-190 on normal driving, 200-205 on the hill that I got up to 230 on.
I don't know if the strong spring on the block off plate is too strong, if the thermostats listed for AAZ's are the wrong ones or if the block off plate is just too far from the port, but this mod fixed the problem. So if you can't figure out your overheating problems, try this as it just might help. Also if you are careful and depending on the design, you can bend the brass in on itself to get the block off plate off, then carefully bend it back, heating it first might help keep it from cracking.
Stock on left, thinner spring and reversed plate on right.
Stock on left, rived back on on right. Use an aluminum rivet or brass screw to avoid the rivet rusting off.