you will know when its broke in as the bike will start to perform.
The blue smoke won't hurt. My stock exhaust engines will smoke a little at start up and if I idle it very long its just oil gathering in the muffler so the muffler won't rust inside
. My bikes with the custom exhausts will smoke even more until the exhaust pipe get good and warm or if they idle for a while.
Heck think of the smoke a mosquito repellent.