I have had some itching and tingling on my breasts since starting iodine, but no rash on my nipples. I have been pulse dosing 100 mg for about 5 weeks. Is it unhealthy skin that perhaps the Iodine is clearing up? Maybe it is bromide detox?
Have you been doing salt flushes as instructed on (I think) the Iodine handout - not just water in salt throughout the day, but where you take a bunch of salt at once?
I've read on this forum that sometimes painting straight Iodine can be too much for sensitive skin - maybe stop that for a while and see if that clears up? Or try diluting it with water so it is not as strong? I think nipple skin is very sensitive, so maybe the iodine is too harsh on it.
Sorry I don't have any clear answers. I hope it goes away soon! Good luck :)