I have no faith in the dash gauge when it comes to water temperature. As a matter of fact, when people ask me what gauges they need in their vehicle, I say the first one you need is an operational temperature gauge that tells the TRUTH! An idiot light, I understand. But an idiot GAUGE??
I suggest those who have either a scangauge or VCDS strap the thing on and make a little test. Drive the car cold to warm and watch the water temperature reading and the VCDS/ Scangauge reading. On most of the dash gauges, beginning in 1996 to present day, the DASH GAUGE reads 190f (90c) when the temperature sensor reads 165f(72c). If you get it hot, the dash gauge will not move above 190 until the actual temperature is around 210f (100c).
I find this very disturbing, when many people with warped cylinder heads tell me, "It never overheated", when in truth, it was ALWAYS overheating!
Likewise, although between the two, I'd rather have a thermostat stuck open, when the temperature is as cool as 180, that is detrimental to fuel economy.
If you don't have a scan gauge or VCDS, accurately measuring water temperature is as simple as dropping a thermometer that will read boiling into the overflow tank. An engine that has just come in from a highway run should be between 185 and 195f. A little more or less is ok, but anything under 180 or above 205, I consider a problem.