Mash Fail (?)

So I'm trying to use up some ingredients I have around. The grain bill I made up is simple, albeit ambitious (or stupid, however you decide to look at it):

2.5lbs. pale 2-row
1lb. malted white wheat
4lbs. cracked corn (I gelatinized it in a separate cereal mash)


Anyway, I mashed in at 148~150, hit target. Iodine test after an hour failed. I let it sit for what has been another two hours (using an occasional bump from the heatstick to maintain temp). The iodine test still fails but the hydrometer is telling me I got good conversion (1.06 SG).

My math on the diastatic power told me that the mash would have a total power of ~55L which should mean full conversion is possible. Ph was target at 5.2. Yet the iodine test fails...granted I can't seem to pull a CLEAR sample.

I'm thinking about just moving forward since the hydrometer doesn't lie. Opinions? I'm also considering just giving the mash one more bump from the heatstick and then getting to this in the morning and doing an overnight mash.

For anyone interested, I ended up sparging and then letting the boil wait until morning. OG was low, but I always miss target when using cracked corn. 60% mash efficiency. So, not a total disaster.

If I wanted to add some honey after primary ferment finished, could I up the abv slightly (only looking for .25-.5%) and not get any nasty flavors? It's an experimental cream ale.