I do put milorganite in the hole when I plant daylilies and have had no adverse affects. I have done this for several years. We do add it on top of the ground for established daylilies two times a year (March and late July/August), being careful that it does not touch the crown. I have added some to the top of pots at times and now I am thinking that explains why we have lost some or why they shrank. Some in pots did fine and thrived (during cooler periods) and some did not. I will not put it on top of the pots again. I may sprinkle a lesser amount in the potting mix as I pot it up and then add more when put in the ground. Daylilies stay in pots until I can get them planted, often longer than I want, and until they have recovered from shipping in the spring. I am planting the fall arrivals after soaking the roots overnight in water and a capful of SuperThrive. I used to only put a drop of SuperThrive in the water but have gotten better results from adding a little more. I keep the water level below the crown so it is not in water.
Michele, thanks for sharing your experience with us. This has been an eye opener for me and an explanation for what has happened to some of our potted daylilies.
Doris