if your t-stat was bad and was closed no water would go into the engine, therefore it would not circulate. t-stats work in weird ways, sometimes they freeze open and you can't get up to a normal operating temp, sometimes like yours they freeze closed, letting the impellar still work and not get water to the engine. a new t-stat and gaskets is only about $20 so I would start there as well. If you have 2-piece manifolds on your indmar engine you will want to see if they got hot, those gaskets sometimes need to be changed, last thing you will want is water in the cylinders.
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