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I hung my pot rack over the kitchen sink, planning that I could let the pans drip dry as they hung, but it turned out to work better to dry the pans before hanging them up.
For the water-damaged cupboard, you can use a piece of adhesive shelf liner to cover the damaged area, assuming it's not rotted through. You need to get in the habit of only putting dry things in the cupboard though. You can get a drying rack to keep your pans in until they're dry, or if you don't have much counter space, get a rack that sits in the kitchen sink to dry the pans. Wash the pans after dinner, leave them to dry overnight, and in the morning they should be dry enough to put away without damaging the wood of your cupboards.
Did you know that you can store lids upright on those shelves? Just put them between the metal bars and they'll be held at an angle so you can get one out without moving them all.
I had one of those shelves, except a taller one, and it was wonderful for storing lids. I ended up taking the shelf out of my kitchen because we don't do well with open storage, it ends up looking all crammed and messy in a short time in my house, but I loved storing lids on that shelf. I haven't found anything else that works as well.
IMHO, you really need to get over the not drying the pans or if you just can't bring yourself to dry them, at least letting them dry out in a dish rack first. If pans are going to be such a problem, maybe microwaving everything will be the answer.
Around here a lot of the pans that are used frequently get stored in the oven and just taken out and put on the counter when the oven is in use.
Putting pans away wet is like putting your laundry away wet! I don't get this thread at all! Dishes & pans must be dry before you put them in the cupboard....period!
I bought 4 decorative towel racks and bunch of "S" hooks. I put 2 on one wall 1 above the other and repeated on the other side. I keep pots on one side and pans on the other.
Just dry the dishes before putting them away. I know of no other way to prevent water damage to the wood. You are the only person I've ever run across who doesn't dry the dishes he or she washes.
There are racks you can buy for storing pot lids. If you use a rack, then nest the pots in their cabinet or drawer.
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