I think trapper is right and that you should take a break from iodine, especially if breast feeding.
I know what it's like when something is wrong with your baby. I found out my son was blind when he was a month old and it's still just as hard now. But it sounds like this is something that can be fixed. The meds sound like a really bad idea. Arm yourself with tons of knowledge and seek lots of responsible advice and you will feel in control again!