An update on my furnace:
I received the Satanite, and it's a good and inexpensive fireclay based coating. It is high in strength and you can put it on thicker than ITC100 (which requires thinning with 50% water). However, it isn't a highly reflective coating, like the ITC100. Best practice would be to put on the Satanite first to a reasonable thickness to protect the blanket, fire it to harden, and then paint on a light coat of ITC100 over that for the benefits of a reflective coating.
On my furnace, the lid insulation has been a continuing problem, despite mechanical fastening. The cause was in trying to piece the blanket on in layers horizontally. Ironman in the propane furnace construction video below shows doing the lid in many
vertical profile pieces, which are adhered to the lid with sodium silicate.
In my experience, horizontal blanket layers cannot be cemented together successfully with sodium silicate. In using sodium silicate, the blanket-to-steel bond is good, but the blanket-to-blanket bond is poor. the adhesive is absorbed by the blanket and yields a dry joint.
When I first built mine, I pieced the blanket in horizontal layers because I only had remnants of 2" thick blanket to work with, (not 1" thick, as Ironman used in the propane furnace lid). The remnants were irregular in shape, and weren't large enough to cut out the numerous vertical sections required for vertical piecing. I did split the pieces into 1" thicknesses, in order to create two layers, which would allow staggered joints.
However after half a dozen melts, my lid insulation was continuing to loosen and drag across the top of the furnace when opened. Pieces would flake off -- and the lid required continued patching with expensive compound. An attempt at reinforcing with metal fasteners horizontally through the rim of the lid also did not completely solve the problem. Where there were vertical joints in the lower layer of blanket, cracks widened and blanket shrank away from the joint because hotface compound couldn't reach very deep into the cracks to protect it. Large sections of blanket would loosen and sag.
Finally, yesterday, I removed all of the insulation from the lid. I now have sufficient 1" thick blanket to do the vertical layer type blanket insulaation. I've ordered some more sodium silicate, and hope the lid built this way will last better
Ironman's propane furnace build: