One of the reason placement of an EGT senosor close to an exhaust port is bad is because the sensor gets heated by the one pulse and then is allowed to cool to the rest of the exhaust manifold temperature. As the exhaust gasses are still expanding as they leave the port they are not as cool as they will be. This can lead to an elevated reading. You still should be able to see a difference with the water injection though.
Edit: A good source for methanol is a dry gas.
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