Be very careful you don't over cool the engine by capturing the generator's waste heat. It will be very bad for the engine.
Excellent point, and in a diesel, it can be a little more of an issue, but in practice, It's pretty hard to pull that much heat from a spark-ignition engine. Like an automotive engine, liquid cooled generators have thermostats, and bypasses. If it's a genuine industrial generator, it has under and overtemp switches that're easily used to control cutoff solenoids and circulatory pumps during warmup.
Easy waste-heat recovery is to use a marine exhaust manifold, and circulate coolant from the exhaust manifold, into a heat exchanger... one will not certainly not 'over cool' the exhaust manifold. Many common standby generator engines are also used in marine applications, with raw water coming in at a much lower temperature than return from a recover system will.
A generating system with heat recovery can be run without a directly-driven cooling fan and radiator... that reduces a fair chunk of engine shaft horsepower required, hence, the base fuel consumption drops. In this case, the heat recovery available, is basically ALL the fuel energy that is NOT converted to electricity.
Let's say your base fuel consumption on a spark-ignition propane machine is 2gal/hr, at 92,000btu, and you're driving a 14kw load... that's 182,000btu/hr... if that was a perfect conversion, you SHOULD be getting 54kw or so, but you're only getting 14kw, which means the remaining 54-14=40kw is waste heat and noise. Rough estimate is that about 1kw is noise, that means 39kw of your fuel needs to be recaptured somehow.
39kw = 133,000btu.
If you cool the exhaust, and pull the excess engine heat, you'll get around 100,000btu, because at least 33,000 of that heat will be radiating directly off the engine and generator. If it's in MY generator shed, though, it's warming the room, so that's not really a loss.
100,000btu/hr will take 100,000lbs of water up one degree in one hour... that's 1666 pounds (208 gallons) per minute. If you slow that flow down to say... 3 gallons per minute, that's 24lbs/minute... with a rise of 70 degrees... or double that flow to 6gpm to yield a rise of 35 degrees.
Basically, if you scale your recovery system on BASE fuel consumption cooling, you'll never overcool it... you just need to give it some bypass time to warm up, before starting the recovery program.