My dog's breed gets sebaceous cysts too.  I hate those things.  Have tried the 
Lugol's but didn't try it with the DMSO.  My female has one very near her eye.  
It's tiny but am taking her in today to have it removed before it gets large as 
they have gotten huge when I've tried cleaning them.    In most cases it costs 
about $100 every time I've taken her in.  My male is a couple years younger and 
hasn't required sugery for them yet.  

Thanks for all who have contributed stories of trying to treat them.

Cindy