Some utensils have some gold or silver encrusted or inlaid in the utensils.

Answer

The view that 'as long as the gold/silver is not touched, the utensils may be used' must be set aside and the fatwa and amal will be on the view of Imaam Abu Yusuf (Rahmatullah alayh). In one Riwaayat, even Imaam Muhammad (Rahmatullah alayh) is in agreement with him.

Since it is not possible to meticulously make amal on the other view, it must necessarily be set aside. It is impractical and it opens a baab (door) for gross abuse.