Re: 1981 2hp--How can I tell if it's pumping H2O?
There is no peehole/telltale
the water flow does leave, with the exhaust, from the outlets above the prop twixt leg and gearcase assy.
As suggested you should get a few drops, a fine spray or a mist from the exhaust relief port(s) on the back of the leg.
I doubt if it will over heat in 1 or 2 minutes at idle .
Run it for longer keep feeling the cylinder and the head, but not the bolted on square exhaust manifold cover.
It should never get so hot that you cannot touch and keep a finger on it for a couple of seconds although the centre of the head around the plug and away from the water channel will be a bit hotter. A splash of water should not sizzle.
Any discolored paint may indicate over heating.
If in any doubt and esp if not changed recently fit a new pump impeller.