Performance and exhaust gas emission of gasoline engine fueled by gasoline, acetone and wet methanol blends
... The results of the testing, there was a 12.62% increase in brake power.
Brake specific fuel consumption (BSFC) has increased by 4.35% compared to P100...
The resulting CO and HC emissions have decreased. The decrease in CO emissions reached 87.5%... [That's a more complete burn]
Moisture Content (% v) 24.88... [of methanol]
The highest increase occurred in the PA30M15mixture [30% Acetone, 15% Wet Methanol]
There's no Ethanol in that mix (to get everything to mix) but that's a LOT of water!?
IMHO it's the high Latent Heat of Evaporation more than the high Specific Heat Capacity of water, cooling everything down that enabled your 2 deg of timing advance.
BUT it may go further than that:
While there is evaporation there is no boiling of the water as boiling point increases with pressure.
So ~none during compression or the main combustion event at ~20 deg ATDC, but likely after when pressures drop enough. That's steam when the crank is at a better angle to produce torque..!?
I also just cant discount Steam Reformation which is the industrial production of Hydrogen from HCs and Steam at much lower pressures and temperatures than those during your compression-combustion..?!
(Similar to your Talon pgfpro, but I doubt he was "FasterThanYou'!?

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https://ftyracing.com/topics/projects/rwd-talon/