I also have a 5411. It will not discharge ANY water until the thermostatically controlled exaust loop reaches over 150 degrees, at which point the thermostat opens up & allows water to flow into the water muffler, instead of just recirculating into the engine block. This is one reason that the engine exhausts out a lot of steam, because the exhaust gets hot from a lack of initial cooling water flow throught the muffler. I & all of us 5411 owners are intially baffled by this engine. I choose to leave the cooling water circuit which runs to the thermostat closed, which allows water to run directly through the engine & out of the muffler. Universal used the thermstat to allow the engine to warm up more quickly by recirculating raw cooling water to reach running temp at 180 degrees. But the engine will still run fine if the raw cooling water flows straight through the block & out.
The thermostat is really better to use when running in colder fall or early spring temps.
If you do not have a second cooling loop set up on you engine, the U can also just remove the thermostat & U will see an immediate discharge of cooling water through the stern transom discharge. I have always found it a bit unnerving not to see coolant water flowing out when the engine is running. But this engine always runs on the cool side, never topping out over 180 deg. Good luck & enjoy our underpowered, but super reliable & fuel efficient lil diesel.