I need your help!!

I am new to the 2 stroke scene and this is the 1st bike Ive owned. I own a 89' Suzuki Rm 125. (When I was looking to buy a bike, this was by FAR the cleanest one I found. Looked at ALOT of bikes! Bought it from a mid 40s year old guy who used it to drive down a field to check fence posts.) Anyway, Ive had the bike a couple weeks and one day I was riding and for sh*Tz and giggles I thought Id check the oil (in the case) and see how it was. Well it looked milky white, so I figured that there was alot of water in it. So I drained out the oil, flushed it out, and added Suzuki 10-40 liek recommended. Then I took it for a quick rip down the road, and looked at it again and it was milky white again. So I checked the radiator fluid which was a little low. I refilled that and drained and replaced the oil again. And then STILL got the mily white oil, and the radiator fluid was down again. What does this mean?? There wasnt a oil or fluid leaking from the motor anywhere.

So what I figured was the fluid was coming in from the radiator and going into the case. Help me out and let me know what ya think it could be and what I need to replace. Thanks!