"All electronic devices are made of magic smoke. When the smoke is let out, the device dies."
Can't remember where I read that.
You will need a new CPU.
You could try putting the heatsink back on and testing for a few seconds to see if it's OK, but you'd then be putting your MB, PSU and everything else on the mobo at risk if your CPU is indeed fried.
In case things go wrong, you'll need a new CPU, mobo, RAM and video card minimum. Not to count the PSU, which may also burn, but I doubt it as they can withstand high surge currents.
CPUs are well under $100 if you look around. IMO it's worth it. Better than having to spend $500.
Sang