It's healed but I'm still using the cream. I'm letting the skin cells "forget" as my dermatologist once put it to explain why any skin treatment needs to be continued after symptoms disappear.
The peeling wasn't the problem, more the inflammation. I'd have a "crisis" and the junction of lip skin and regular skin would swell up a bit, become red (instead of a clear boundary between lip and skin, I'd have a blurred red and raised contour) This happened everyday and would go away only with cortisone but not for long. Afterwards, the skin would harden and crack; then it would peel a bit.
My skin, however, did NOT become white in water and like I said, the peeling wasn't that annoying. It's the reaction that was; always red, itchy, burning, dry and swollen.
I tried the cream on a small patch of very dry and peeling eczema on my hand (the only eczema I had to test it on : )) and it worked. It's worth a try, I'd say, even if your lips are peeling. I get the feeling this is good for everything allergic (eczema, rashes etc) because it heals inflammation and soothes the skin. Cheilitis is often a form of eczema.