Had the same thing with my old 1.6 blamed everything but it ended up being the waterpump impeller. when was the timing belt done? i'd put $10 on it's that. easiest way i checked mine was pull thermostat out and stick your finger in the hole (lol) and see if you can spin the impeller. if you can then it's come apart from the actual pump and isn't moving any water.
Pic for reference: Mine when it came out. :l
01 MKIV GTI ME7 converted hybrid k04
08 MKV GTI Daily driver duties
I have serious VAG issues.
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