Coupla thoughts...
Just had the doghouse off my van. Full size vans aren't popular anymore, but maybe some of the Michigan guys who hang out here know who can supply the doghouse insulation. Appears to be some type of fibre, covered with heavy "tinfoil".
As discussed, the thermal engineering is non-trivial. Consider investing in some thermocouples - they aren't that expensive. Fluke used to sell a thermocouple adapter (essentially just a calibrated amplifier) so they will direct read Temperature on a DMM. With a
good DMM, you can direct read the Tcouple output, look up a table, and convert to Temperature - PITA though vs. the cost of an adapter.
Sensors, Thermocouple, PLC, Operator Interface, Data Acquisition, Rtd is one source for Thermocouples, Fluke too.
External fuel tanks, at least during testing, should help on the safety front.
Did some research a while back.... the best bang/buck muffler implementation I saw was using a 600cc street bike muffler. (600s being the sweet spot in the street world, lots of guys drive the bike home from the dealer and pull the stock exhaust. Ergo, lots of virtually unused 600cc mufflers are for sale, and therefore cheap).
The example I saw was on a Yamaha genny, that a guy built to run at Glammis. Essentially built a tripod, and had the bike muffler firing straight up. Good solution, low cost, and mostly comes down to having some intermediate metal working skills.
Pls keep us posted how this goes.
Rgds, D.