If the engine is froze up your probably in for a rebuild. Id try getting that goop off the top of the piston and putting several ounces of penetrant of you choice on top and let it sit for a couple days. Then take something like a cut down 2x4 that covers much of the piston top and easily tap on it with a hammer. See if that knocks the piston loose if thats whats froze. Although I dont see any rust in the pic if it had water/coolant in the bottom end you may have rusted/pitted and scored bearings and its time for a major rebuild.