Well, the PO of my '79 told me how he had put a small amount of oil in the exhaust pipes, right at the top, where they connect to the engine. He said it coated the inside of the pipes to prevent rust... I now (four years later) have one muffler rusting out, from the inside. Does it work? Maybe, but not well enough for me to justify pulling the pipes, adding oil, then installing new copper gaskets.
With regards to running the engine like you did, it likely overheated -- not really a good thing. How much, or if, it damaged it, I could not say. Your best option is to change the oil and filter immediately, to remove all gunk from your engine. Before you change it, though, I would recommend adding some
SeaFoam to the crankcase (1 oz. per quart of oil -- 3.5 oz.), letting it idle (at 1,000 RPM) until the oil is warmed up (180 F), to suspend any crud (maybe five minutes, but no longer). The
SeaFoam will help dissolve any varnish/carbon deposits within the engine/transmission, which will either be suspended in the warm oil, or captured by the filter.
SeaFoam is available at any automotive department, or store, for around $9 per 16 oz. can. I have used
SeaFoam in my '79, twice, with 10,000+ miles since, without issue; I've also used it in my other two bikes, and three 4-wheeled vehicles' engines, without issue, over 20,000 miles on one car since treatment. It is safe for your engine, and your bike's transmission. Always read and follow directions.
Put in a new filter, and fresh oil of your choice. Shell Rotella T (15W-40, high quality, friction modifier free, diesel oil: SM rated for cars) is around $14-$15/gallon, and T6 Synthetic oil (full synthetic version; 5W-40; SM rated; friction modifier free, diesel) is around $20/gallon, at Wal-Mart. Whatever oil you use, check it often, to see how fast it darkens. The
SeaFoam treatment should scour the engine/transmission very clean, but if the oil darkens quickly, then change it, and the filter, again. Cheers!
1979 CB750K (sold, 2012, but not forgotten)
1983 Kawasaki 440 LTD Belt Drive (sold, 2011)
1993 Kawasaki Voyager XII