This looks like a problem that one of my chins has from time to time. The scuffed fur is caused from discharge from the eye. It can be caused by eye irritation. Sometimes a little piece of dust will get in the eye and irritate it. Then you get a clear discharge. If the chins scratches the eye, it can become infected (conjuntivitus). This results in a milky white discharge. This discharge can still clear up on it own or it can get so bad that the eye "gums" shut.
For now, I would remove the dust bath and watch the eye. If you start to see a milky discharge, I would go to the vet. He or she may run a test to see if the chin has scratched his cornea. He can either prescribe triple antibiotic drops or a salve. I've always used the drops, but that was just what the first vet recommended. During the treatment, you should not allow him to have a dust bath as the wetness around his eyes will attract more dust. If the eye "gums" shut, try applying a warm-wet compress to dissolve the dried discharge. Do not force the eye open. Allow the water to do its work. YOur chin will look like a wet sewer rate afterwards, but it works. A 10 day round of treatment usually clears up the infection.
I have one chin who gets this about twice a year and think it may have something to do with the change of seasons. Or he just might be sensitive to dust. Usually, it remains a clear discharge, and since I have experience with it, I don't take him to the vet, and it clears up on its own. When it progresses to milky, I begin treatment and see the vet.
Another concern with eye discharge is potential respiratory infection. This is usually indicated when there is also discharge from the nose or sneezing. However, if you have not seen this before in your chin, it may be worth it to have a vet listen to his lungs.
Finally, there is always the risk that such an infection is contagious (although this has not been my experience). While administering treatment, it is a good idea to keep this chins isolated.
If you need any more advice, PM me. I may go out of town on Sat. but should be back by Sunday.
Patti
