First start did not go so good.

[Barnsnake]

You didn't make it clear whether the starter was struggling to turn the motor over, or whether it simply took a lot of cranking before it fired up. The answer to that question would have a major bearing of the troubleshooting approach.

Some items to check:
Check the firing order. There are two firing orders possible on the SBF, depending upon which cam was installed.

Pull the spark plugs and see if any appear "unusual".

Disable the ignition and see how the starter spins the motor with the plugs out (and whether it shoots anything out of the spark plug holes.

Check the timing.

9 PSI sounds a bit high on the fuel pressure. Check with Edelbrock for the appropriate pressure. If the mixture is really rich (i.e.: flooding), it will heat the exhaust as you describe. The engine would probably die as soon as you moved the throttle and the accelerator pump shot in more fuel.

Air pockets in the cooling system are nearly inevitable at the initial startup, aggravated by a Cobra's low radiator position. Burp and fill, burp and fill....

Consider removing or replacing the thermostat since its age and temperature are unknown. A stationary car with no pulley mounted fan will heat up pretty quickly, especially with a "green" engine.