$20 Tool Post Grinder

[Moldyjim]

Pretty typical of the runout on those pencil grinders, the collets aren't very precision.
A careful whack and a diamond truing of the wheel will help out a lot to get a good finish.

I've done similar grinding by just putting the grinder in the toolpost directly. and carefully tightening the setscrews down on the grinder body.
Not precision grinding just a gotta get it done job.