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It is hard to grind something unknown in shape.
It would help a lot if someone with an identical wheel could take a close up picture of the shaft end.
Good idea to cut the shaft an work on this outside the boat or take it to a shop. Is it possible to pull out the shaft if I loosen the nut and spring on the backside? (The shaft can move a bit in and out with the compression of the spring- my guess this is for how much resistance you want? ). The steering gear is fully functional besides that the wheel is stuck on the shaft and I like it to be as original as possible.