Hilo axle repair????

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Hey guys, I'm doing a king pin job on a 1978 Toyota Hilo. The King pin bearing is was wiped out on the right side but it caused damage to the axle. It is hard to tell by the pics but the axle is damaged pretty bad. I would appritiate sugestions of how you guys would repair this. Should I build up the surface with weld beads and then machine or grind it back down to spec or cut out the piece and macine a new piece and weld it back in??? All opinions are apritiated.I have MIG, STICK, but no TIG. I also have a mill and lathe. Attached Images
Reply:I think the best thing to do is set it up in the mill and re-bore it about 1/4" biggerdo you need to do the top and bottom?make some sleeves (I.D. to size.. O.D. .002 over) and press them intack the top and bottom where the sleeve meets the parent part..ream the bore to size and your done..we fix stuff like that all day every day..but welding the bores is difficult and the weld may harden a bit from the heat..re-boring and re-sleeving is the best bet.....zap!I am not completely insane..Some parts are missing Professional Driver on a closed course....Do not attempt.Just because I'm a  dumbass don't mean that you can be too.So DON'T try any of this **** l do at home.
Reply:Thanks for the info Zapster. But there is also damage on the surface area where the kingpin bearing sits. It is worn down (pic #3). I can definitely bore and sleeve the hole which would be the fix for the inside of the hole, but what do you recommend for the top. The top has to be a machined surface, but it also has to be raised up to its original height so the king pin and bearing can be shimmed to spec. (a couple of thousandths)
Reply:well if you can make bushings...hmmmm... when you bore the piece out mill say 1/8" off the top and make the new sleeves like a "t" if you know what i mean..that way you have a nice machined surface on top of the sleeve... for the shims to sit on...let us know how you make out.....zap!I am not completely insane..Some parts are missing Professional Driver on a closed course....Do not attempt.Just because I'm a  dumbass don't mean that you can be too.So DON'T try any of this **** l do at home.
Reply:If you don't know what he means I think he is saying make the bushings so they have a shoulder on them. Mill the insides of the kingpin bearing seats so you can add lets say 1/8" to them with the bushings and arrive at the original dimensions. IMO this is how they should have been made originally so if this happened you pressed out the bushings put new in and all is well. Like in a lot of cases I often wonder if they ever intend for you to fix anything when they design it  Hope all my banter helped you...