We run temps in the closed loop up to 220F and up to 200F in other parts of the circuit, but remember we use Mobil 1 which does not shear down as thin at high temps. If the oil film gets too thin it slips thru clearences in the pumps and motors and causes more heat, faster, as well as losing lubrication and causing excessive parts wear which creates greater clearences and greater slippage. use good oil and check it often.
The new carb laws causes all engine manufactures including Kohler and Robin to run much leaner, thus hotter. Head temps are now over 400F.
Deutz 1011F oil cooled engines have a max oil temp of 266F.
Omega makes therma-couples up to 2000F which can be located any place you want to check the temp and be connected to a digital readout or recorder, thus allowing you to collect all the data desired.
Use good oil, keep your oil cooler clean, and use a machine large enough to do your job instead of straining the guts out of a small one and your oil overheating is over.
EB