Virginia,
It sounds like you put your retouch varnish on much too heavily. You might try brushing over it carefully with a brush with a bit of turpentine on it. That should redissolve the damar enough to spread it out more smoothly. Don't use too much turpentine, though, or it could take off paint. Retouch varnish should be applied very thinly; no more than is absolutely necessary to resaturate your colors.
Damar will eventually discolor, and turpentine or stronger solvents are required to remove it. There is the possibility of these solvents attacking the paint layer if it has not had enough time to cure, or if the varnish has bonded to it too well, as occurs when the varnish has been applied too soon after the last brushstroke has dried.
Virgil Elliott
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