Problems with cylinder #2

I'm sure I need to do an intro somewhere else, but I need your help asap. I've aquired a 1979 KZ1000 ltd with around 45,000 miles. It runs - not great but it runs. The problem is that it blows a lot of oily smoke out the left muffler and clears up when I pull the #2 plug. So far, I've cleaned the carbs, replaced a weak coil (#1 & 4), and checked the valve clearance. Here are those results: Intake 1-.076 2-.076 3-.051 4-.102 Exhaust 1-.127 2-.102 3-.127 4-.127

When the bike is running, I noticed what looks to be exhaust comming out of the #2 carb (it has crappy pods which are soon to be changed out). I plan to do a compression test on all cylinders, but have to get the tool back from a friend. I'm new to these vintage bikes so any help would be appreciated.

a compresion test would be a great place to start.

When the bike is running, I noticed what looks to be exhaust comming out of the #2 carb

sounds like a leaking intake valve, letting gasses come out carb? or cam timming just off...bent valve hanging...or valve clearance off.