Well that was fun.
Two things became obvious over the 545 miles.
1) the temp sensor - dashboard feed - is goosed. It maintained the temperature differential (5-10 degrees over the ECU numbers), but then as time went by there was the occasional flicker / blank reading which happened more and more often and then as we passed Tebay, even the temp gauge needle abruptly dropped to the end stop for a few minutes before reappearing. As the numbers were plausible I decided to trust the ECU temperature readout on colour DIS. Luckily I have another on order since yesterday to be delivered here and the tools / coolant to effect the swap during my holiday.
Edit after the event : temp sensor replacement resolved this issue.
2) Despite normal pump activity at idle and with some throttle, it is clear as engine load levels increase that at some point there is a restriction to the flow to the point where the heat cannot be effectively dissipated by the radiator, so the temperature then starts to increase above ideal - I have an idea what the problem is and will come back to this in a minute. However, by cranking the cabin heater up to full (3 miles after leaving home!), adjusting fan speed and driving with my window open an inch and the same on the passenger-side rear, it was then possible to drive according to ECU temperature reading on the cruise control, aiming to keep it around 86-90 degrees give or take load climbing hills. Accordingly instead of averaging 63mph or thereabouts we averaged around 53 with the journey taking just under 10 and a half hours instead of just under 9. Consequently I annihilated every fuel record I've done for the journey - 68mpg. Dundee to Birmingham alone used 26L of fuel instead of 36L for the refill. Conversely we were lucky that it was frosty from Scotland until somewhere in the Midlands, and temperatures gradually crept up in the cabin after sunrise as we were heading down the M5 as the vent outputs were hotter than the face of the sun .. just glad this wasn't the summer holidays!
So what do I think is the problem?
My hunch is that it is related to the DEFA heater installation. Not that this should be problematic in general. However, owing to my having forgotten to give the mechanic the print out from the installation instructions showing the orientation of the pipes and plumbing in of the pump to the oil cooler output for this engine (a workshop slot came available unexpectedly), I remembered that he improvised a bit putting the installation together so that it looks different to the recommended diagram when I did find the pdf document again. As I've barely used the car since, and when I did the ambient temperatures were low and the journeys short - the issues with cooling haven't manifested themselves hitherto. Now temperatures are higher and this was a proper drive, at motorway speeds this becomes obvious.
Edit. I'm taking this back. I've now located the pdf and the installation is actually how it is meant to be now that I've had a chance to look in daylight and warm conditions.
Edit after the event. All of this entire hunch was wrong and a red herring as various posts from people with more mechanical knowledge suggest over the next page or so as this is a minor circuit within the Tdi coolant system. TL;DR : the thermostat was not opening properly as some more observant people suggested in various posts. It was not the DEFA, and nor was it my mechanic's handiwork.
My solution for now would be to try to source an appropriate length of the right grade and diameter of coolant pipe from a local motor factor if I can't get an original one from TPS, and swap this in place of the two pipes flanking the heater for now using the existing spring clips, all at the same time as replacing the temperature sensor.
Does anyone know what diameter and grade of pipe is appropriate (equating to half of part number 11 running from oil cooler to temp sensor housing I think?) - the clips needed to secure the pipe are part 29 on this diagram (23mm x 12mm), and the tubing - with a 6N0 part number - is obviously not just an A2 part. Or am I barking up completely the wrong tree?
coolant hoses and pipes<br/>flange<br/>reservoir Audi A2 (A2) 2003 year Audi EUROPA 121038 spare parts
audi.7zap.com
Edit.
reading online it appears that EPDM tubing comes in various standard sizes, one of which is 23mm with the appropriate reinforcements - I have my calipers with me so I'm going to measure the pipes to confirm. It does appear to just be a case of releasing the spring clips and plumbing the pipe in to bypass the heater from oil cooler to the sensor housing .. what could possibly go wrong ?