Do I need to replace this steering knuckle?

Hoboscratch

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Getting ready to put my front end back together. I was wire wheeling some of the surface rust where the knuckle and the hub join, and noticed the surface on the knuckle wasn’t flat. I fit the hub bearing assembly into the knuckle and it looks like this:
A3A843E5-FB81-4E0A-B8F5-22021BBFFC15.jpeg
Obviously some space there. The knuckle as a whole is solid, albeit rusty. Should I replace this or will this be fine?

This front end overhaul has sucked up all my fun Jeep budget for the year, replacing both knuckles will add another $500 which blows my mind that they’re at expensive. What would you do?

This is a 3rd vehicle. I won’t be off road this year and will just drive it around town until winter comes, then it will be put up.
 
are you pricing the knuckles from a local retailer? rock auto list them for less than $70 each in my case on my 03. I laughed when i seen what my local retailers were trying to sell them for.
 
are you pricing the knuckles from a local retailer? rock auto list them for less than $70 each in my case on my 03. I laughed when i seen what my local retailers were trying to sell them for.

I did just see that, how was the quality? I wonder why every site has them for $120-250 and those are that cheap.
 
I went ahead and just ordered a set from Rock Auto. Looks like they had the same part number as a couple other 4x4 sites for 2x the price. Should work fine for me, thanks!
 
Quality was good, No complaints of fitment. Machining looked good too.
I didnt have time when I replaced mine but if I had some downtime I would have liked to degrease and rustoleum coat them on 90% of the surface area (minus the wheel hub and brake component area.

I was looking at going the dealer route but couldn't find a matching set, priced local retailers and wasn't impressed. likely markup and convenience of same day pickup. Local retailer wanted 2x the price for the same pads RA list them at as well. i wouldn't be surprised its the same manufacturer the local shops are selling, cant imagine too many people manufacturing the same cast part.
 
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Yep, I agree, for what I’m doing anyway, it will be perfect. Shipped already, should be here in a couple days.