Step 1 - remove cylinder
Step 2 - take cylinder apart, clean and degrease
Step 3 - repair
Step 4 - clean and reassemble
I would cut off the old bung and weld on a new one. But trying to do it with it all in one piece is just asking for trouble. Especially as you can take that apart in about 5 minutes.
jb
Gosh, Wayne County Hose, I am sure glad I did not post my suggestion before you replied. I would just hammer the bulge back until it was round again. Might even fire up the torch and heat it a bit if I wanted the professional fix. In the (unlikely) event I could not hammer it exactly round, how about drilling and tapping it for tapered pipe; that way you would have one outlaw fitting to curse the next owner.