My step pads on my boat were totally trashed. My teak was totally trashed too. There was little pride or care being directed toward my boat when she came under our kind hearted ownership.
When the decision was made to totally restore the teak toe rail, a decision had to me made about the badly gouged and eroded step area too. Here is the solution. It's a solid teak step pad, placed on top of the original teak, and varnished after being bedded in with polysulfide, screw fastened, and bunged. You'll note this step pad design is "self bailing".
Here you can see my friend Dave, getting a stock tip from his friend Martha Stewart, standing beside one of those custom teak step pads.
Here's a shot of how the overall teak refinishing came out. For lots more photos, check the master index for this file
http://www.network54.com/Forum/message?forumid=424840&messageid=1126975515 in the event anyone wants to revisit the teak restoration data.
Paul
edit comment: Here are some other photos of the custom step pads (and custom teak stair treads), "many years after" the installation.