Oh gosh, I just tried this, only 2 drops of Lugol's 15% neat into my ear that has been itching me all day, and it burned like hell! The pain actually made me vomit!
I almost ended up in the hospital, the ambulance service advised me to flush with water for 20 minutes, which I did and it brought the burning pain down somewhat, but I was worried I'd caused real damage.
I can't believe they would inflict this on children. My advice, do not use Lugol's neat in the ear.