Sucks Crimz
I have had a couple good friends go through what you have.
Both remained married (for a while).One lasted about 4 years after the episode before finally admitting he couldn't forgive or forget, spent the next year or so doing the wrong thing before coming to his senses and realizing punishing her wasn't the answer and got out.
The other seems to have been able to forgive and move on with their lives like 7 years later so it looks like they are gonna make it.
My divorce didn't include cheating (Least I don't think it did
) But I know I hung on the the marriage too long out of the sense of honor, loyalty, pride, stupidity or whatever other dumb reason I hung on. We didn't have a kid together (she had one when we met) but I had this feeling of "Dam, I got too much time and effort into this thing to walk away". Having two kids with her I imagine that feeling is way more intense with you.
Good move getting some space between you. Sounds like you might be able to work stuff out on some levels where you can be friends. Thats good but always remember you have a lot of friends you would never marry. If your parents were divorced (mine were) you probably already know having divorced parents is a whole lot better than having them in a bad marriage.
All that said it sounds like you still have strong feelings for each other. Go slow and make sure you are being honest with yourself, if you can't completely forgive her you should move on.
Good luck