Is there supposed to have alot of heat off the engine even if temp. gauge shows good temp.

Sportsbike engines do run a bit hot at times, depending on how you use them. What exactly are you talking about when you say "a lot of heat off the engine" are you talking about feeling it on your legs when you are riding the bike? Is this a new problem for the bike or has it always been like that?

If the engine really IS hotter than the gauge is showing then there might possibly be a problem with the temperature sensor. Usually this will be screwed into the radiator somewhere with a single wire connected to the plug. If the threads of this plug are dirty or corroded it might give a false reading as the plug needs a good earth for the signal to be correct. Also, if the engine has been run on water only rather than coolant the actual sensor that sits inside the radiator in contact with the water may have some corrosion on it and require cleaning.

Another possibility is that the thermostat is not working and blocking the flow of water/coolant in the system. This might cause hot water to become trapped in the engine and the cool water in the radiator is not able to circulate into the engine.

Finally, one other thing that is a common cause of bike engines running hot is a lean condition where they are not getting enough fuel for the air being taken into the engine. This is a very common thing to happen when the exhaust is replaced with a much more open pipe without doing any rejetting. However in a normal situation you would expect to see the temp gauge running slightly higher if this was the problem.

If it's any comfort I've seen stunt guys try and blow up a ZX9 deliberately and they couldn't do it. Jammed the throttle full open for about 15 minutes, smashed the radiator and let all the water out, then finally kicked it over and smashed the engine cases and half the oil ran out. Still wouldn't stop running. They made those things pretty tough.