All this talk of preheating the fuel re-sparked an old idea of mine (pun intended, I guess):
Use the water to preheat the intake air.
Yes, usually it's done at the exhaust manifold. But depending on the car's layout it might be easier to run plumbing to let the intake suck air through a heat exchanger run off the cooling system.
Coolant temp should be pretty consistent once warmed up. When throttle is steady the output air temperature should stay steady. Changes in throttle position will change the intake airflow rate. That will cause some change in achieved air temperature. Not to worry though - I'm sure the temp gain using the exhaust manifold heat varies also, and nobody ever gave that as a reason not to heat the intake air there.
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