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OP again with an update. This weekend I was able to work on the bent knee part again. Earlier last week I picked up a mini-butane torch so I could heat up the piece hotter than just a hair dryer or boiling water.
The good news is that I didn't fuck the piece up too badly and I didn't set myself on fire. I scorched the piece a bit and some minor surface bubbling, but that's only cosmetic. since the piece is hidden, who cares?
The bad news is that THE DAMNED PIECE IS STILL WARPED!!! Yes, even with a torch flame right on it to start melting the plastic, the twisted joint would not unbend back to it's correct position. FML
Gonna throw in the towel on this one. Untwisting the knee part is just a sunk cost fallacy. I'm going to go onto Volks USA's website to order a new pair of legs. That's another $50 wasted on a "deal" of a used doll. Yes, I should have just bought a new doll outright as I would have been cheaper in the long run. But that's in hindsight now. Hopefully I can sell the old legs as parts to recoup some of my loss.