Started missing 2 days ago but hasn't got any worse. Checked today and saw oil around the egr. Took off the egr and there is sludge oil/water mix. The recovery tank and engine are free off oil/water mix. The radiator has black sludge in it. Please tell me its a simple fix!

I'm not as familiar with that engine, but if it'* anything like the GM 3800, there would be a gasket between the upper and lower intake manifolds. And if like the 3800 there are cooling passages right next to the EGR tube. when this gasket or UIM fails the coolant will leak in to the EGR and get in to the intake and can hydrolock the engine.

We changed the gasket and cleaned the egr out. Im hoping since there was oil all over the outside of the egr it was just a failing gasket. Thats still doesn't explian why the oil/water was in the egr though.

I just did a 3800 with a failed UIM, and found coolant in the EGR. Guess it'* where the leak is.

UIM = Upper intake manifold?

That is correct.

Thats the one right on top of the engine right? Don't know much about this engine.

Yes, the very top of the engine.