If the rough cylinder is below the exhaust port then you could be okay.

I'd lightly sand the cylinder with 600 grit just enough to break the glaze.

The piston looks rough, but there is hope.
Pull the rings off. The part that is covered my melted piston needs to be dug out.
Use the broken ring to clean out the ring grooves.

Again lightly sand the piston to find the high spots.
Take off as little as possible.
Then have the piston Glass Beaded.

Send the cylinder and piston to Bowman for a custom set of rings.
I don't remember his email address but it starts off as ringmaster@

I'm sure someone will step up and give you the rest of the address.

Now if you can afford it buy a new piston, but I have saved pistons like yours before
But they are never as good as they could be, and they were for chainsaws not airplanes.

The 066 is a great saw, Pound for Pound the best.

Gut the muffler and add 2 5/8 exhaust tubes and it will really wake up.

Good Luck