While you're checking, examine the plugs for oil - they'll look black. You could have either water OR oil in the cylinders, so until you find the problem, keep an eye on the coolant and the oil - and watch for a puff of smoke on start-up and after a lengthy idle - or on hard acceleration after a long coast.

It sounds like the 3.0L head gasket gremlin got you, but hopefully it's something a bit simpler.

If you indeed find a blown head gasket (compression test should tell you), I'd suggest several things to do in concert with gasket replacement:

1) Check the heads for dropped exhaust guides
2) Check the heads for straightness - have them trued if necessary
3) Have the heads surfaced at a minimum
4) Have the radiator rodded
5) Check/replace the thermostat
6) Check/replace the radiator cap
7) Check/replace the engine cooling fan clutch before you tear down the engine - with a warm engine idling in P, watch the fan while you shut off the ignition (might need an assistant) - the fan should stop IMMEDIATELY with the engine - if it continues to spin even 1/2 turn, replace the fan clutch
8) Replace the valve seals while the heads are off
9) If you do have to replace the heads gaskets, do a search or post back about how to prep a 3.0L block wrt head bolts and threaded depth available for proper clamping range.
10) The FSM is incorrect for head bolt torque spec. The correct spec is 80 lb-ft, hot or cold... re-torque is unnecessary with the OE gasket or Fel-Pro PermaTorque (so use one of those 2 - don't try to save money there).
11) If you have an EGR system, thoroughly clean the upper intake plenum passages with Berryman B-12 (outside and don't sniff)
12) After it's back together and running, check EGR operation and replace any necessary parts.

Good luck,
Frank