I'd say nothing wrong, sounds like system works perfect, first of boil point is 212, increase 3 degrees per pound of cap, so 16 lb cap, boil point is about 260, all cars with factory electric fans operate in the 240 on and off at 205 range, fuel atomizes best around 210, if your staying below the 200 mark your system is perfect, Licensed tech for 38 years, I wish people would understand this more. Stat is to help in heating engine up to the temp range you wish to be the coolest temp for it to run at and control the speed of the flow in the system, it has little to do with highest temp reached, 90 % of the time if overheat is experienced there is generally another issue. I lick to see all my cars and customers cars run around or just below the 200 - 210 range. as for the fan cycle on and off, that is what they do, if it cycles to much, you have room to increase your on setting a little, let it get just a little hotter before it comes on.