I did a full top end rebuild (With a known good cylinder/Piston/head i had from another bike), it is running again and the blue smoke is a Thing of the past
My old cylinder had deep scratches in it and the piston/rings were pretty damaged too. thank god i did the rebuild now, i dont know how long it would have survived before a catastrophic failure.
I also did regrind the valve seats and changed the valve stem seals. After rebuilding and setting the right valve clearances the bike sounds much better then before (way less clatter!)
Thanks to everyone that helped!