It really doesn't make a huge difference if you return the heater core to the waterpump or the radiator. If you return back to the waterpump, your introducing semi cooled water back into the INTAKE side of the waterpump. Same goes for the radiator, your introducing semi cooled water back into the COOLED side of the radiator.
As for overheating or running hot, double check your fan clutch/belt/fan shroud and thermostat operation. Also check for debris infront of the radiator/condensor fins. If these things are fine your next step (IMO) would be to have the radiator checked/cleaned.
All this is assuming your positive the gauge is reading accurate.
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