Sillylips, you say that you've only had cheilitis for a few months.
I know it must seem awful and desperate, but please hang in there. :-)
It may be an avenue to see a surgeon if nothing else works (although having a lip skin graft/transplant would really scare me, personally!), but have you tried everything you can think of first?
There ARE people whose cheilitis has gone away, even people who were members of this forum.
There are also some people who've been able to get it to a manageable state, where their peeling only happens in one big go, once a week, or even at longer stretches, and otherwise their lips are moderately presentable and people don't really notice. I think that all of us can hope to achieve at least this, without surgical intervention. It just takes a lot of trial and error, with this very strange condition.
How old are you? Are you in teens/20s, or 30s/40s? I think that the older you are, and the more recent the cheilitis started, the more likely it is that you'll be able to get rid of it, the more likely that it's a temporary symptom of something else going on with your body/skin that you can solve. This is just my perception, obviously.
Like you, I have random exfoliation in bits and pieces every day, although every second night, I have a larger exfoliation happen. So I partly have a cycle, and partly don't.
I've had cheilitis since last winter, about 12 or 13 months now.
I actually think that I've hit upon the answer (the answer to having normal lips again) for myself, but I won't know for at least another week or two. I want to be cautious about assuming that it's all over. If my lips do get better and stay that way, I will tell people here about my solution. It might be the solution for me and only me, and may not help anyone else, so I do not want to raise anyone's hopes.
Interestingly, if my current experiment is right, what seems to have been causing my cheilitis in the second half of this year is probably pretty specialized, not very generalizable to the population of sufferers.
What caused my cheilitis in the *first* half of this year was probably something different than is what is causing it now -- I now am starting to think that I have become healed from the first cheilitis cause that affected me at the beginning of 2009, and the second cause must have taken over mid-year, when my lips were so vulnerable and damaged from the original cause, and then the second cause has just pressed forward relentlessly, to the point where my bottom lip is exfoliating in bits and pieces every day, has fissures, cracks, some bleeding, raw areas, etc.