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Good evening, I am Dr Ruff. Thank you for your question. This appears to be a foreign body granuloma, which are benign. They can remain for a long time and can be from a simple hair follicle. They often behave that way as the body is constantly reacting to it. The treatment for them is removal which is quite a simple procedure.
It is reassuring that after 1 year it isn't continuing to grow as this would be suggestive of something like a basal cell lesion, again removal would be the treatment for this.
No worries, so if you pierced the full thickness of the skin, the soft tissue beneath will take 6-12 months to heal. the scar on the skin surface will take up to 2 years to fully settle, more so on thickened areas of skin as the blood supply is not as great. If it is tender, you could use a topical steroid like hydrocortisone for a few weeks at a time to see if this helps.
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