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Am always topping, up the radiator water level every day, also the water level in the reservoir bottle is increasing

 
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you only top up the resvoir bottle to the level shown not the radiator.

 
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i suspect your head gasket has gone, or is going... its pressurising the water jacket... so its between the cylinder and the water jacket, when it expands to your crakcases, and mixes with the oil... well, lets say its not a good thing... get it fixed before it blows completely

 
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Classic case of a bad head gasket. Check in your radiator over flow if the water is brown or oily. If that being the case your screwed. Also when the car is running go to your exhaust and see if you have an anitfreeze smell coming from your exhaust. If that being the case put a bullet in her she's done..

 
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If you are only using water, and have been for some time, then you've caused the problem.The top up should be a mixture of water and coolant as the coolant stops the water from reaching boiling temperature.When you say 'reservoir', do you mean 'expansion tank'?The expansion tank level will be higher when the engine has been running as the hot water expands (hence 'expansion tank'). Once the engine is cool (leave it overnight), the level should be between MIN and MAX.Using only water in the cooling system will lead to high steam pressures that will blow gaskets and introduce water into the oil system, effectively knackering the engine. If you can see a mayonnaise like oily residue on your engine, the gasket has gone and that's a lot of work. Very expensive. Part of the engine could be warped beyond repair.