The only things that could have failed are:
1 - your PCV valve could be opening too much and allowing oil to get sucked into your intake through the plumbing from your PCV valve
2 - your head gasket could be bad, allowing the oil from the passages to get blown back through your exhaust
3 - your turbo bearing seal could be bad, allowing oil and exhaust to pass through to the intake side of your turbo, into your IC and intake plumbing.
Pull the IC tubing from the fender to the 3000 pipe off and remove your accordion hose that routes from the air flow meter to the turbocharger and check your turbo for oil leak.
The smoke you have is probably blue, indicating that you are burning oil and you probably have a bad turbo seal and need to rebuild or replace your turbo.
Do NOT drive your car with a bad turbocharger! If the seals are bad, it can do the same thing to your fluids that a blown head gasket can do by mixing the oil, antifreeze, exhaust and intake air.
Just buy some gaskets and get another turbo.