It's not unheard of but quite rare to get the emulsification when a Subaru head gasket goes. They normally go between the water jacket and the combustion chamber.
This leads to combustion gases getting into the coolant system and obviously the same in reverse which is why you lose coolant and why the temp gauge goes up.
One way to test is:
Take the car for a drive with the coolant levels correct. After the car has been up to normal temp for a few minutes, pull over, open the bonnet and turn the engine off. Open the expansion tank cap, not the rad cap. If you can see a lot of bubbling, it's due to the gases in the coolant which will mean head gasket/s have gone.
Standard Internals on that model are good for the level of power you are after. The weak point are the standard pistons. As has already been said, an updated oil pump would be good. Also, take the opportunity to change the timing belt kit and water pump, unless they have been done recently anyway.
It would also be a good idea to upgrade the cylinder head studs to safeguard the new build.
Personally, if you have to do the head gaskets and want to take the car to higher performance levels, and intend to track the car, I would always advise going the extra mile and refreshing the big end and main bearings too. The new pistons will need the new piston rings too.
The only reason to fit a baffle plate are if you intend doing track work of any sort.
Hope that helps a little