You need to remove the thermostat and test its opening temperature in a saucepan as it heats up. It may open early, late or not at all, or stay open if faulty. Judging by the fact the car doesnt show super hot on the temp gauge, or seemingly up to temp, theres a few things that can xause this.
Make sure you have accurate temp readings, so try and install a new temp sender for the dash gauge, or still better, install an aftermarket electronic gauge like a speco so you can talk in real numbers and not in hot cold or the red bit terms. If you think its working ok, maybe just remove and descale the probe on the gauge and make sure its clean enough to absorb heat from the water directly.
Now that you know your temperatures for certain, i would remove and test the thermostat as described above, usually if a car fails to get fully warm its because the thermostat inst correctly regulating the flow of 82 degree water. Basically, the thermostat has a wax substance inside it that expands when hot to force the thermostat open, they are designed to open at a certain temp, and close below that. Basically your thermostat is probably staying open, so Id suggest a simple replacement of that, and any physical removal you can do of crud will help the cooling efficiency. Most Toyota motors have a block drain where you remove one bolt and all the coolant runs out the bottom of the water jacket. If you remove this bolt on a full cooling system and little to no water falls out, then its will be pretty heavily scaled up inside and it will benefit from being picked out with a tool so it drains again and even try running muckowt for a while. Motors perform at less than their best when run too cool.