I don't know what Audi cheaped out on when they made the transition from AWM to AMB with quality control on the cylinder head metallurgy, but us AWM guys never have had this issue. Not one documented case that I have come across, and I currently run a completely stock head at butt dyno 350whp (more to come, and head that I bent valves in previously is currently being built...with story on how this happened at closing parenthesis. this head has also taken an incredible beating over the years, completely stock with no hairline fracture by cooling passages issue). Only issue I ever had was bending valves, which was caused by a piece of plastic that broke off TB cover getting caught in the crank gear and throwing off timing (having a little piece of plastic cause so much damage was quite frustrating, to say the least). Easiest route, source replacement AWM head (made sure to only get an AWM, though I am sure other small port 06A small port DBW compatible heads exist on the VW platform...like AWM).
Picked one up for like $150, diesel shop machine shop decked it (info people should know, thanks to you Fletch: answer to your question about sourcing a machinist: diesel shops usually have a machinist with his own shop on site that works on diesel truck parts. much cheaper to machine parts than order brand new ones, with the things they work on. large percentage of the time any diesel machine shop is credible as far as reliability and credibility goes because truck parts are the only thing they really machine. and if they don't have a machinist on site with his own shop for that shop, they will point you in the direction of the one they use. take their advice because a deck for a machinist that works on diesel truck parts strictly with the occasional passenger vehicle walk in request is something kind of difficult to mess up, quite frankly. for more involved tasks, inquire with that particular machinist and research credibility locally in the matter because that is when real machining that can make or break an engine build resulting in a loss of a lot of money comes into play, like displacement increasing to more involved process like short block building. my machinist is also a diesel shop machinist and one of the best in the area. was lead to him by same advice I'm giving right now and wasn't the first person I met looking for a local machinist. told me how he built a few VWs in his younger years, first time I met him and follow that guy where he goes like your stalker ex-girlfriend...without the craziness. old shop caught fire which in turn burned down his shop. I know where he currently has a new shop which is of course another diesel repair shop, where he was purchased all new equipment by company simply off reputation, company location, company hours, etc) and been running it till this day. Swapped over all components, including cams and hope it stays problem free (kept old lifters that came with head, but seeing no scoring is what told me to go ahead with it. added crap ton of assembly lube regardless, no problem yet and current engine has seen the speedo just shy of tapping out...before throttle let off).
My suggestion is to source a used AWM head, have it decked, slap it in and call it a day. Or Keith (walkytalky20) can tell you which replacement ones are safe and unsafe to buy. Something about a particular stamp to look for, even when no stamping of an engine code on tab.
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