Is the issue only at idle, or when you try to power up?
Have you tried starting the engine out of the water, with muffs? This should give you an idea of if water is passing through the engine. The added pressure from the hose may overcome the water pump so you can't rule that out....but if you're not seeing water drop from the gimbal housing then your engine isn't getting water and had a block somewhere. If it runs great and doesn't overheat, then I would suspect the water pump.
To check the water hose from the gimbal housing you need to pull the outdrive off.
What drive do you have?
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