if that works, why not keep the groove but put it under the knob so that it is depressed. say 2 or 4 finger holes in the knob sides.

or same thing but make slightly raised larger knob and depress a small compass into the top of that(probably too much but might look ok),knob would just look like (and be) the compass hsg.

or at the very, very, very least, reverse that blobby knob profile so that it cannot catch and the underside fits the deck profile when closed(ie the base would be the large diameter). the openability will hardly be lessened and it will look and blend more like for a kayak and less like for a chest of drawers.