In this paper we examine the inverse problem of determining the
amount of corrosion/disbonding which has occurred on the boundary
of a single circular (or nearly circular) inclusion D in a
two-dimensional domain Omega , using Cauchy data for the
steady-state heat equation. We develop an algorithm for
reconstructing a function which quantifies the level of
corrosion/disbonding at each point on the boundary of D. We also
address the issue of ill-posedness and develop a simple
regularization scheme, then provide several numerical examples. We
also show a simple procedure for recovering the center of D
assuming that Omega and D have the same thermal conductivity.