Edit: Sorry, I forgot to say that the PXR3 I bought does not take an RTD, so that makes things simpler. Now I need to find a submersible T Type. More searching to go.
Thanks folks, I will have to take a closer look when I have La Peppina in hand. Since the boiler is up top and exposed I cannot insulate it, but perhaps there is a spot underneath that will do. I like the idea of mounting underneath as then there is no wire sticking out the top, but I suppose if I did have a wire I could run it down the back and not see it anyway. The nice thing for me is that I have no rush, this is a fun side project.
I like the idea of attaching it to the screen at the bottom, that seems like a good spot if I do use a submerged TC.
Regarding shifting to get an average temp, I would think at a small volume (half a liter or so) the water temperature should be pretty uniform as long as I am reading an inch or so away from the heat source. I am not sure if it really is necessary to have an average temp reading, or just a consistent reading as long as I know the difference between the temp in the PF and the temp displayed.
In the meantime I am reading through thermocouple and PID manuals for fun

Take Care,
Dan