Haha i listend to these guys when this happend to me, ended up waisting a day of my life and about $100.
Before you and they jump straight at the thermostat you should consider if you fan turns on and if your oil gets up to temp. I learnt this the hard way. You can also stick a thermometer in to the water and get a rough reading.
Your oil temp is normal, that means your engine isnt running cool, which means your water isnt moving to fast and you dont need to take everything appart to change the thermostat.
First replace your temp sensor, its right on the front of the head infront of the blue temp sender. It doesnt cost much and only take about 23.76 seconds to replace.
I had the same problem and i replace the temp sensor and the guage works fine.
If that doesnt work then move on to the thermostat.
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