Is it worth doing or is it better to find a replacement engine? How likely is the head going to be warped and/or cracked on the 1NZ-FXE? Does the engine need to be decked/milled in this series? Any parts interchangeability with the Yaris - i.e., head bolts, entire head with the prius cam installed, etc... anyone have any experience with Chemi-weld/bars-leaks for these cars? Anyone know of a cheap prius guy in perth. Background: bought vehicle 'as-is' a few months ago. 215k (km) on the clock. Noted overheating - took to dealer, diagnosed water pump. $1,300 for water pump, an oil change and a free car wash. 800km later, noted quick flash of warning light on MFD, reservoir full, checked coolant in radiator - low. Figured it was air in the system. Filled with 250ml water. Drove fine locally. Next day - Checked in morning after 10c day with engine cold - pressure under radiator cap, coolant sprayed out. Reservoir still full. Evening - checked again, noted low on coolant. refilled radiator with 500ml water, with vehicle in 'ready', engine in warm-up. Reservoir still full. Suspect head gasket - bubbles rising from radiator smelled like exhaust. I've read one post which suggested that an engine replacement was in order, however nobody ever talks about their experience in replacement: Question about head gasket repair ... worth it? | PriusChat I prefer not to go back to the dealer; they're a bit expensive.
The head certainly may be warped at minimum. Find a used engine. There is no interchangeability with other Toyota models. Regarding the dealer charge, your characterization of "bit expensive" is the understatement of the year. OP should get lifetime car washes and engine oil changes, for that price - considering the US price for the pump is ~$70 or so and it probably took the mechanic 1 hour to replace.
1 USD = 1.27 AUD so the OP paid the equivalent of USD1,021. An outrageous price regardless of the currency you convert to...