This is the procedure I use. I take no credit for this but it is what I use and others use and has always worked well for me. This is a cut/paste.
"Each and every zoo that goes into my tank, healthy or not, gets a dip. This dip has worked for most every ailments my zoos have had. Some will require a bit of surgery and in some rare cases where I have received a colony with a very nasty fungus, I have deviated slighlty and placed several drops of Lugols Iodine directly onto the infected colony after a bit of surgery. I see that a lot of people are dealing with the whitish, opaque to yellowish fungus or some sort on your colonies. For some reason this happens alot during shipment and I'm sure a lot of you will concur. The key to saving a colony with this issue is to act immediately. You must remove all of the fungus with tweezers outside of your tank. Now using a very sharp razor blade, cut down and around the entire area that was affected. If you have a large rock and you want to be sure that you have irradicated the problem, remove 2 or 3 rows of good zoos around the area that was infected. Rinse the colony well with tank water using a turkey baster or the like, still outside of your reef, now perform the dip with the dipping brew below. I sent it to someone last week so i just copied and pasted it below.
"Here's the dipping brew that I have used and most people are using it now as well. If it is performed as soon as you see the signs in the proper manner, success is always attained.
1. Using a 5 gallon white bucket, add 3 gallons of RO water.
2. Now add 1 or 2 drops of Lugol's Iodine per gallon of RO water.
3. Set your PH to 8.2
4. Set your water temp. at 78 degrees
5. If you have some Flatworm exit made my Saliferts, add
2 drops per gallon to the RO water to kill any Flatworms
Place the colony in the white bucket right side up. Leaving it there for about 5 minutes. Then grab the rock and invert it and place it in the water 3 inches below the water surface. Now twist the rock as fast as you can in a clockwise and counterclockwise motion for at least a minute. While the rock was sitting still in "the RO water, it was killing off all bristle worms, Nudibranchs, flatworms and parasites. It will not kill off any Nudibranch eggs so you will have to inspect the rock for what looks like a tiny white 1/8 of and inch curly white piece of thread. They won't detach from the rock as the sack is very sticky. Inside this egg sack is up to 40 or so eggs just waiting to hatch. If you see one, just remove it with tweezers before placing the rock back into your reef. By the way, once you have finished twisting the rock in the water for a full minute, pull it out the water and dunk it back into the water a few times, splashing and swooshing is good, it dislodges anything that didn't fall off in the twisting motion. You are going to kill off a few copepds as well, but this is ok, as you have tons more already in your reef tank and your sump/fug. The dip will not kill your zoos, trust me, if you do exactly as stated above, you will be fine. If your colony is in declined and has been for some time, it may be too late to save them, but if you always do a dip on the first or second day of the problem, I have had a 99 % success rate at saving my own."