The coolant Toyota sells is premixed to the right concentration so you don't add water to it. The reason is that if you add anything other that pure distilled water you add minerals that can react with the aluminum in the engine and radiator and cause corrosion. Make sure you have a good seal on the radiator cap outer lip so that it can suck coolant from the expansion bottle back into the radiator and engine as it cools and not air. If the top hose is getting hot then the thermostat is working and the bottom of the radiator should be warm if the system is circulating properly. If the heater is putting out heat it is good and can actually keep the engine cool enough to keep the radiator from getting hot. Rev the engine to circulate the coolant but avoid heavy throttle use until you get the air out of the system so you don't overheat the heads. Check the dipstick and under the oil filler cap for white foam - this indicates water or coolant in the oil ... which is bad! Braking and hard turns can help move the air bubbles in the engine around and flush them out but the air only comes out as the engine heats up and coolant is expanding. You have to keep heating and cooling the system to pump all the air out and suck coolant back in. Make sure the cap seals on the top outer edge and if you open it do so only when the radiator is cold then fill it if needed with coolant right to the top so that it starts to overflow to the expansion bottle then cap it and warm it up again.

So i changed the coolant last night. I drained the radiator and block but only got 5-6 qts out of both, even though radiator and overflow tank level was at full. I got 2 gallons of toyota pink coolant but it only took 1 1/4. Manual says full capacity is 7.2 qts. I think i got rid of most air in there, bleed it 3 times already and level stays at full now.
I really appreciate all your help guys! I guess I got lucky this time, lesson learned:relief:

Make sure to keep some coolant handy for a few days and keep an eye on the overflow tank after every drive. The radiator may still suck in more coolant as it naturally expels any remaining air that didn't get burped the first time. Took me 5 days before the overflow tank stopped sucking in coolant. It was only a little at a time, but better to be safe than sorry.

Excellent! Nice header BTW! And like "That Kid Ju"st said keep checking it!

Check your water pump might be leaking