I'm new to this so bare with me.

Installed new pads and rotors a while back. Finally got to drive the jeep yesterday. The brakes seized up on me and were smoking pretty good. After researching all night I've taken the wheels off again. One of the issues that seems to pop up is collapsed hoses. So I got some new ones to be safe.

Then I noticed these notches in my steering knuckles. FML. I'd assume this is pretty bad and the whole knuckle will have to be replaced?

 

I think you are fine.

 

Seems like the pads got stuck in those cut outs and were pressed against the rotors

 

I think they're fine too, unless you notice any pulling one way or the other . I have a pair if you want them though, $60 shipped.

 

Worst case scenario weld the notches up and grind them smooth.

 

As you found out, those are not fine. That is a sliding surface for the pads and they will bind up in those notches.

I went through this a couple of months ago with my right knuckle and ended up getting towed 40 miles home. I had replaced the left knuckle some time ago but somehow missed finding the notches on the right knuckle. And my notches weren't nearly as deep as yours. A new knuckle fixed the problem.

Knuckles are expensive and the sliding surface can be repaired as noted by Lowrange2 if you can weld or find someone to do so. Otherwise it looks like 94XjSport94 has a good offer.

 

Think ill try the weld and grind method first. I got everything put back together and they seem to work now. No more pulling to the left or right when braking and no more heat and smoke. For now that is. Going to drive it to work to ugly to check.