During the first trial run, I checked out the engine head, fittings, thermostat housing and hoses with a non-contact thermometer as the engine warmed up.
Because the thermostat is not installed in the head it needs a small hole in it to initiate enough thermosiphoning to bring the head temperature water to the thermostat. Then it can respond to the engine warm up.
I found that the existing hole with the jiggle pin did not do this quickly enough for my liking, so I removed the pin and drilled out the hole to 3/16".
I reinstalled the thermostat and restarted the engine. This time, hot water traveled up, and when the temperature was hot enough, the thermostat opened.
Thermostats are designed to open gradually over a range of temperatures. The 192 rating is near the top of the range of opening, though not the very top. Since this thermostat was designed for an automobile with a far greater heating capacity, and since the Lister is so easily cooled, the equilibrium point was reached on my setup before the 192 F rating was reached.
I estimate that the running temperature of my engine in our cool weather now (70F) to be about 165-180F. At least that's what the thermometer registered. Hard to tell with a non-contact thermometer, since the outside of a pipe is generally cooler than the water inside. It's possible it may actually be as high as 190, but I'll need an accurate inline thermometer to tell.
Anyway, it seems to regulate very well -- quite steady within a couple of degrees. and it's now a lot warmer than the 100F return temperature I was getting before I added the thermostat. If higher temperatures are desired, it may be possible to drill a smaller hole than the 3/16" version I used. Perhaps just removing the jiggle pin would have been sufficient.
Good luck if you build this pipe version of a thermostat for your engine, and let us know how it works out for you.