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@NurseHolliday
You don't varnish stainless steel. You polish it. Or Chrome plate it.
The inside isn't stainless steel. The layer that's peeling off isn't steel and the underneath isn't stainless or it wouldn't corrode like that.
Whatever is peeling off, you don't want it in your water, whatever is underneath, you don't want rust in your water.
Just bin it