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Iggy Azalea -- Threatens Nick Young ... I'LL CUT OFF YOUR PENIS

I'LL CUT YOU DOWN TO SIZE

Nick Young is on the THINNEST of ice -- 'cause Iggy Azalea says if the NBA star betrays her just one more time, SHE'LL GO FULL LORENA BOBBIT ON HIS ASS!!!

Iggy appeared on the "Orlando & The Freakshow" Radio show on Wild 94.1 -- and made it clear she's very NOT COOL with what she saw in D'Angelo Russell's video ... when Young apparently admitted to cheating on her.

"I'm not cool with it," Iggy said ... "Like you'll have half a penis.