This is the # 2 intake valve and I am trying to find out how did this happen. Since there are no signs on oil starvation or any major trauma, the camshaft is beautiful and all the pistons tops are in good shape I narrowed it down to the tappet addjuster. The tappet adjuster screw can be either:
1. too tight, i.e. the lash is too small. Now if this was the reason for the screw eating up the valve, it would self adjust itself to proper lash and stop.
2. too lose, i.e. the lash is too big. That means that instead of a gentle click and push during the cycle, the screw hits the top of the valve like a little hammer, again and again and again. The downward movement of the arm is not constant speed, it starts slow and speeds up when the other end of the arm climbs the lobe of the cam shaft. With the indent getting deeper, it hits it with greater speed eventually creating this 0.8mm indent. Now when I am thinking about it, this affected valve may be even taller than others, at least on the mug like edges, the repeated hammering raised those "side walls" up instead of digging this indent in the valve.
Please, fault my logic.