Why bother with the emulsion?
A pretty common hot-rodding modification is to add a water/methanol sprayer to inject water/alcohol into the intake vapor especially after a turbo but before it goes in the cylinder. This works well because heat is already a problem (the turbo cranked up the temperature compressing the air) and lowers knock issues (especially important if the boost was raised).
If you want to try DYI mixing oil and water, I would suggest looking to build a similar setup as above (with lots of know how already learned by the hot-rodders). Keep them separate until vaporized, then shove them both into the engine. My guess is that this would work especially well with a lean burn (heat issues and detonation).
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