I agree, notice my question in the begining did cover that though
From what I understand, and please feel free to correct me if I am wrong.
As ignition timing is pulled, less and less of the last phases of the combustion process is used to drive the piston down, and instead this energy is turned into heat. The energy exists the engine via the exhaust manifold. If less of this energy is being used for work, then more of it is turned into heat, thus raising EGT's.
"Most of your energy (in the form of hot expanding gas) is not used to propell the piston down the cylinder but rather partially propells the piston down the cylinder and the rest goes out the exhaust valves as the gas is still expanding at the end of the power stroke and has begun the upswing of its exhaust stroke. Hence some of your air/fuel burning is taking place in the exhaust manifold where your EGT probe is rather then inside your engine."
