Creative, less-work solutions:
If the panel is smooth or can be made so with light sanding, and you have a good eye for color, faux paint the discolored area with artists' acrylics to match surrounding color and grain detailing, then varnish to match sheen.
Rather than irreversibly painting the teak paneling, use high-grade, vinyl wallpaper. It can be applied to selective areas, may be easily undone by future owners, and especially with tone-on-tone patterns available, is less harsh than the contrast of teak trim and white walls.
I've also seen murals painted or charts of favorite waters decoratively decoupaged on a damaged wall.
For longevity and to create a classic look, varnish interior teak trim with a gloss rather than matte finish. Good luck!