I use a "blocking Plug" in the bypass hose. It consist of a freeze plug that slips into the hose and is clamped near the upper head port. Drill one or two 1/8 holes in it so that you may bleed it .
On my Boosted car I dont use a T stat. just the hose block. I also have had no issues using the head outlet for the temp sender. I just tap the outlet for the sender and screw it in. It is pretty common. My book covers most of this and lots more.
I have come up with a nice cheap oil pressure" accusump" style tank.
Pics can be found on my site under" Cheaps" in the phot section along with my cars./