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I'd hazard a guess here that it's not "solid" stainless steel.
The U/S of the pot has an engraving saying "inox 18/10" so it is stainless.
I agree with you it's best to stop using it. The rest of the pot (collar, top recipient, etc...) isn't coated. I wonder if I could blast all the coating out to save it, surely 18/10 stainless is safe to use even with high temperatures?
The exterior of the pot is varnished, to give the maker a shinier aspect, and a very slight orange/gold coloration. This has also got damaged with the overheating... Now the pot has a motorbike exhaust look at the bottom, which isn't too bad looking.
Still used it this morning, but it's time to pull the Bialetti out of the cupboard...
I'd hazard a guess here that it's not "solid" stainless steel. I think it's plated, and the stainless has come off revealing bog standard cheap steel below, which is now rusting.
Whether that makes it safe, I don't know. I'd say probably not because the plating is steel and the resultant oxidation probably isn't the best thing to be drinking either