ON MY UPPER OUTSIDE HEEL (NOT WHERE I PUT WEIGHT) for months now it feels like a piece of hot coal is inside----(about the size of a fifty cents piece)------

Do you have any spinal problems that could be causing nerve pain in the back of your heel? Nerve pain really feels hot, burning hot at times.

That is where the peroneal tendon is. When mine was torn it felt like burning at times and just achy other times. Have you had any popping feeling, like something is catching? This doesn't always occur with peroneal problems but if it does occur, it is most certainly peroneal. Also, the achilles inserts in that area, too.