I've rebuilt several engines that had burned. Like BURNED. Melted the aluminum components on the outside, like the alternator, starter, ect. But that's the point. REBUILT.
I agree with Tim's comment that if the head isn't hurt, then it probably didn't get that hot. To me, it wouldn't matter. I'd rebuilt it. K341 costs a little more to overhaul than the smaller ones, but it still isn't that much. Deltacub is right. Tear it down and rebuild it.
On the point of it being stuck....
Yes, it could be the PTO or something like that. But it could also be carbon from the fire. Hot oil/burnt oil will coke in the bearing, rod and cylinder walls. Bearings could be stuck from the coke. The armature could be stuck to the flywheel, or a number of other things.
Again, I'd just plan on a rebuild.
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