A recycled exhaust gas cooling and condensate regulation system for a natural gas fired internal combustion engine driven co-generation plant, which allows efficient exhaust recycled gas combustion while maintaining lower head temperatures to reduce thermal NOx emissions and delivering increased process / utility heat to a proximate co-generation client, is provided. The recycled exhaust gas cooling and condensate regulation system has primary and secondary, air-to-gas, exchanger units, coupled in series, such that the first unit, designed to take exhaust gas exiting the engine, cools the gas to a first exhaust gas temperature effectively super saturating the water vapor in the cooled exhaust gas; and, the second unit, designed to handle lower inlet temperatures, condenses the water vapor and super cools the exhaust gas to <130 F. In one embodiment, the engine intake mixture including the exhaust gas is supercharged. In another embodiment, a separate intercooler circuit is used to cool the compressed intake charge containing the recycled gas prior to entry into the intake engine manifold to further reduce head temperatures and control thermal NOx emissions.