Assume you are running a 50:1 mix -- or know for certain the vro2 system is working well, if running on vro. (If on vro, you might try running on premix and see if the motor runs cooler.)
A low tech test (but effective) is to pull the l.u. and flush up the tube, rigging something to fit reasonably snug over the tube. The water should exhaust down into the leg and out the exhaust port (also the tell tale indicator). Might be good to do this with the thermostat out (cover on), then with the thermostat in place -- won't test the thermostat, but will insure the the bypass is not blocked. With cover on, does water exit at the normal places -- exhaust port, down and out leg (tell tale indicator as well, although that doesn't show circulation). With an IR gun, you can locate cold spots as well as hot spots, of course. So you might check temps at various locations while flushing to see what you find. Hose temp would be, what, 40 to 50F? In any case, you should be able to confirm circulation.
I get a little nervous when I measure a temp around 160, but your operating temps might be pretty normal as flyingscott suggests. 140 to 160F is usually cited as the normal range. I think 180F is too high, but then again it probably depends on where you get the reading. I'm not sure about temp readings at the t.stat cover without actually taking a temp again on one of mine. I'm pretty sure, though, that the temp at the cover was cooler than the head surface temp when I measured (can't say for sure, offhand -- sorry). Just intellectually, I would think the temp at the t.stat should be a little cooler as cooling water is being released through the stat. Upon first opening, it's probably hotter because the water there was heated up in the engine prior to full circulation.
Easy to overthink. If it smells hot, buzzers going off, burns your hand -- it's too hot. Below that, "normal" probably varies with the motor and the environment.
Good sleuthing, ducker. Hope you report back after testing -- thumbs up.