I have done what you are intending to do. It should work well I have done it to KT17 s and to M18s
A jug from a kt17 will fit on a M18.
I have cleaned up the old crankshafts with emery cloth and used them with no problems.
I have 14 782s and 2 1811s 1 782D.
One of my 1811s had a hole in the block and bad jug. I fixed the engine last fall just like I stated and used the tractor all winter as my snowblower tractor.
Here in Minnesota we just had one of the worst winters ever and my 1811 got a good work out. I also do four other neighbors driveways.
Brian