Smoking Briggs & Stratton engine

A few weeks ago, I swapped the 12.5 h.p. Tecumseh engine on my Sears riding mower for a Briggs & Stratton engine from another Sears riding mower. Specs are as follows: 15.5 h.p. OHV Turbo Cool I/C Platinum, Model 28N707, Type 0173-01, Code 970416ZD.
My old engine was starting to burn/leak oil again (18 years old) and I figured it wasn’t worth the money to repair. The more recent (I think) engine is 3 h.p. stronger and sounded great when I first heard it running. It started at the turn of the key and ran very smoothly.
So, I bought the old engine (and useless tractor) for $150.00, swapped the engines in the tractors, changed the oil and air filter, cleaned the spark plug and then congratulated myself on avoiding the purchase of a new riding mower.
Everything was great for the first few times that I used it but then I noticed that the engine’s revolutions were fluctuating somewhat for a while, then it would stabilize itself. Shortly after, I noticed a slight knocking noise from the engine. It wasn’t much, so I figured that I maybe had not noticed it when I bought the engine. Also, when stopping the engine, I started to notice a small puff of blue smoke coming out of the muffler. I’ve been adding a few ounces of engine oil almost every time that I need to use the tractor. Obviously, it’s burning oil, but not leaking it; my garage floor is clean.
Yesterday, my wife had to stop cutting the grass because the engine suddenly started to smoke heavily, from the muffler.
I am worried about the engine knock. I have a gut feeling that this is the cause of the oil burning problem, and that might be more expensive to fix than just replacing a gasket.
I don’t want to spend a huge amount of money on repairs since we could be moving within a year and I might not need a riding mower anymore. From these symptoms, can anyone tell me if it’s worth repairing and if yes, what could be the approximate cost?
Thank you very much for your help.

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