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Don't know what your woodworking skills are but if you're competent, I would strip it back and veneer it. I don't have the painting skills to restore it in situ. Veneer can be glued to MDF or Masonite but if you take the leap, know you are taking the cabinet to an essentially destroyed state before it's restored so there's no turning back once you start. There's always a point in projects like this where you think "Why did I even start doing this???!!!"
My advice, for what it's worth, would be to leave it alone. It's part of it's history. Usually I only repair significant damage to the cabinet or replace parts with scrounged, original pieces.
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