Whoa, there's a scab for sure. In the Chicken Chick link above, there is a good video on how deep to cut. I think you will need to go deeper, but it won't matter if you wait a couple of days and soak it before attacking it again. Every case is different. I used to do surgery on all of mine, but now I ignore it unless they are really red and swollen, or limping.
Edited for spelling
Edited for spelling
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