Thx so much for responding, I really appreciate it.
Not sure what cut the edge in means exactly but from what you see, it looks more like a painting issue vice water damage? As I mentioned previously, it is only in places where the ceiling meets the wall to the extent that I find it at opposite corners of the wall at opposite ends of the house. Not sure if its chemical or humidity in the home or what could be reacting to this particular paint. Have you seen this before?