Detect cooling system issue

[laopi]

Hi,

I had a 1996 mercury 40 hp outboard, I found no water from pee-hole when it start on lake, so I stop and put it on my driveway, I get some smoke blowout from pee-hole pipe, the smoke out from the two below rectangle hole, then I blowout some color water (tea) from the pee-hole pipe, tea will go to inlet, is it normal of something broken?

Thanks.

peter