I'm not sure where you are with mechanical skills, space, time, a spare car, tools, etc. So I'd suggest taking it to your local independent import/foreign car mechanic and having him take a look at it. He can run a compression, leakdown and exhaust gas test to determine what the problem is.
I'd assume from your description that you have a blown head gasket at the minimum. If you keep running the car you're only going to cause more damage. Coolant in the oil will contaminate the main bearings and waste the motor in very few miles if you run it that way. If it's just a head gasket, that's not all that expensive nor difficult with a decent selection of tools. If it's a cracked head, I'd be calling salvage yards to see what they had available.
Keep in mind that later e36 motors will also fit, and they have upgraded parts that make them slightly more desirable. Any used motor you consider must have decent compression numbers and very little crank end-play. I'd also consider a new clutch and refreshed drive-line parts while this was being done if you intend to keep the car.