mine looked like this!
had to double check if it was water cooled or not, it looked like oil and smelt a bit like burnt caramel.
I've just seen this post, how long have you owned this bike?
Never seen this of on a Fazer before but on other bikes mainly race engines, somehow the coolant could been lost due to a leak or after doing some work i.e. loose pipe etc. I've also seen it where debris has entered the system after major work or using an old watering can which jams the impeller and buggers the bearing. The coolant is then lost through evaporation, oil enters via the buggered bearing/impeller shaft the bike is now oil cooled I will work but not for too long!
Fully and semi synthetic oil is that good today an engine can run with almost no loss of performance for a limited time with no coolant. Bit of history here during WW2 most US carrier based aircraft engines where big radials, radials were mainly air cooled and preferred over water cooled engines at the time as they didn't have cooling systems that are venerable do battle damage. The Pacific war was by definition fought over long range over water the planes had to get back to the carrier or ditch in the sea, risking loosing the pilot.
Battle damage often meant damage to engine oil tanks and possible total oil loss so they devolved oil additives (PTFE forerunners) slick 50 and such like, these would enable an engine to run without oil. Which would keep the plane flying get the all important pilot/s back the the carrier the engine would be shot but they had plenty of them.
You need to do a major strip down to see what is going on with this engine or just get hold of a good second hand engine there are plenty out there.