i strongly advise against cauterization or any type of surgery.
i just visited a dermatologist yesterday who is about 60 years old and has seen a lot in his life:
i didn't even have to explain it to him, he knew it right away. he said this is a genetic chronic disorder, similar to the infamous ichthyosis, just that it only affects the lips and not the whole body. it is also akin to atopic eczema (neurodermatitis). we seem to have it in our genes and at one point or another, it just breaks out. some acquire it in their childhood, some in their teens, some in their early 20ies or even later. i acquired it with 22 and i'm 23 now.
he prescribed me 2 keratolytic ointments with urea in them. (i can list you the exact ingredients tomorrow). urea breaks up the keratin scales and allows us to easily remove them. he said that it is HIGHLY LIKELY that this condition will NEVER resolve, just as other genetic diseases just do not resolve. we'll have to accept and learn to live with it. he said, if there is any chance to completely cure it, it's only by leading an incredibly healthy lifestyle, boosting the immune system so far, that it eventually learns how to counteract this pathogenic process of buiilding up keratin. he also said that SEAWATER is highly beneficial and a vacation at the sea can help a lot.
of course, he may be wrong with some of what he said, but he seemed to really know what he was talking about. but maybe he was wrong about this being totally uncureable and we can beat it one way or another. i really hope so and i won't give up.