Sweet P (my P2) has been smoking excessively for years and I've just lived with it. I mean it smoked up the entire yard and left a trail of smoke everywhere. It has always leaked gear oil on to the ground and I suppose it always will. I did one thing different last week. Instead of adding oil up to hole as I've always done, I decided not to before a ride. I checked the level with a tiny tie wrap and it was about 1/4" below the fill hole and I did not top it off. Went for a ride and it ran better then ever before and even stopped smoking. It felt like someone kitted it while I was sleeping. And yes on an 80 mile ride the 2T oil level went down as normal. I still ad gear oil SAE30 as needed but never to the top. The spark plug was a nice brown. Couldn't be more pleased.
Sounds like you've got an oil sucker leak. FreakMoped had a vid on it on his YouTube channel.
There is an area between the crankcase area and gear area that is only about a quarter inch wide for the gasket to seal when the case halves are put together. Oil from the gears gets sucked into the combustion chamber if the gasket gets compromised.
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