headlight is very very hazy on the inside
 

well it seems on the inside as when I ran fingers on the surface, it doesn't feel "rough" compared to what I'm seeing. It's actually smooth to my fingers.

I was thinking of baking the thing and cleaning it from the inside but unsure if this will fix it. any thoughts? thanks

Well a production year would help for starters...not all housings can simple be baked.

Contrary to popular belief, most headlamp housings aren't actually a "sealed" system in the sense that the interior of the unit is sealed off from the atmosphere. Why/how does that affect your situation you ask? The facelift housings for example, contain multiple vents on the back side to prevent moisture buildup. These vents are not much more than a hose elbow with some foam stuffed in to catch dust and debris. If you are experiencing issues with stuff on the inside of the lens, be sure to also check and clean the vent material.

When I had my housings apart I gave the lens' a bit of a once-over using some Kleen-flo aerosol glass cleaner and a microfiber towel.

it's a 2001 v8 halogen

Are you sure it's on the inside though? Have you tried a simple headlight restore kit? Headlights generally haze from the outside, so unless you can clearly see debris on the back side of the lens, I'd start with the resto kit on the exterior.