I think what you are missing is a plug rather then a nipple. I checked out the fsm, and figured by the first pic you posted was this part. In your first picture you can see the treaded hole (top left) where your knock sensor is. Now this is the thing. I have a DE fsm so what Im thinking is if it did have a nipple or any threaded housing previously there, then it went to the turbo (oil + water cooled). So check to see where the turbo's metal coolant lines go. If they have there own place then you just need to get a plug which I have. If the turbo coolant lines do go there then you can go to homedepot and make the "adapter" for 10ish dollars.