Have used products from Omega Engineering for projects like this many times. I usually prefer RTD probes to thermocouples, to eliminate the special cabling and cold junctions needed with TCs Here's a good probe that will screw into a 1/2" pipe port:

http://www.omega.com/ppt/pptsc.asp?ref=PR-19&Nav=temc05

And here's a basic readout unit:

http://www.omega.com/ppt/pptsc.asp?ref=DP25B_TC&Nav=temm03