The thermostat settings currently are LO = 130F and HI = 160F. But the
furnace comes on when the water temperature guage reads 160F, and shuts
off when the temperature gauge reads 185F. The temperature gauge
continues to climb to about 190F after the furnace shuts off, due (I
think) to the lag time for the water temp to stabilize.

Does this sound normal? Why doesn't the temperature gauge track with
the thermostat settings? Should I lower the settings?

This is a Burnham V83 boiler in an oil / hot water heating system with
a coil inside the boiler for hot water.

Thanks,
Art Harris