Internal Combustion Engines are universal and find many applications mostly in automobiles and power generation. They are very complex in their working and have many parameters which affect their performance. Thus any further improvements and modifications can be done once we can get values of parameters under all operating conditions. Current technology provides many powerful tools like Digital Modules which when used along with various sensors facilitate the process of gathering these parameters, storing them and then carrying out analysis with help of computers. Our attempt was to incorporate all these devices in making a real-time system with which we can create a simple "Heat Balance Shit" of our test engine for its operating range.