I installed a new temp sensor, but today put the old one back in and still getting the same temp readings. The only thing left to do now is to use the IR gun.

 

I just did radiator, waterpump, thermostat, hoses, flush, and temp sender and my needle doesn't budge from 195 (sitting at idle, haven't driven much since overhaul).

There is definitely something up if it actually is running that hot. Its even stranger that it runs warmer while driving than while idling. I agree that first step is to verify temps with a IR gun. If temps turn out to be accurate then I'm still not convinced there isn't an air bubble somewhere.

 

I know it has been a while but today I did a little work on the jeep. Swapped out the t-stat for a mopar one and topped of the coolant and burped the air out. While burping the system I revved the engine under the hood using the throttle linkage and noticed that the lower radiator hose was collapsing restricting coolant flow. So I'm pretty sure thats the cause of my heat issue, gonna replace it soon. What is a good hose brand to get? Thanx!

 

210 is operating temperature for the Jeep 4.0... 220 isn't enough to cause alarm. How much coolant came out of the system when you did the change? If it was low, it's possible there wasn't enough coolant in the system to allow your gauge to give you an accurate reading.

Having a worn out/improper thermostat will also cause this. The thermostat will regulate the water level inside the cooling jackets of the head. If the thermostat opens too early or remains open all the time, there won't be enough coolant in the system to accurately give the sensor (or sender depending on OBDI or OBDII) a temp reading.