water in oil

I'm thinking you've got a blown head gasket or other coolant leak. I don't think just water would cause your oil to become milky, thats more of a coolant and oil mix kinda thing. Plus I can't imagine there being that much condensation that it would cause all your oil to do that.

Check your coolant...if coolant is leaking in to the engine then its possible for oil to contaminate your cooling system.

Definitely change your oil, and then again shortly after. I would probably go rent a cooling system pressure tester and see if it holds pressure before running it though as you can ruin your bearings with whats in there now. If it holds pressure then maybe I'm wrong, but if it doesn't...theres some more work ahead of you.