In the first paper of this series we explored the case where a quark-nova ejecta forms a degenerate shell , supported by the star ’ s magnetic field . Herein , we consider the case where the ejecta has sufficient angular momentum to form a torus , and we show that the density and temperature of the torus are such that it will remain degenerate throughout it ’ s lifetime . We go on to discuss the evolution of such a torus and apply it to AXPs , specifically 1E2259 + 586 and 4U0142 + 615 . As it turns out , using our model we can account for many of the observations of these objects including the quiescent phase luminosity , and blackbody temperatures during both quiescence and bursting . Furthermore , for 1E2259 + 586 our model explains the steep and slow decay components seen in the burst lightcurve , as well as the rotation period glitches and enhanced spin-down rate . We also estimate the mass of the degenerate torus to be of the order of 10 ^ { -6 } M _ { \odot } , and speculate that the observed optical/infrared emission from 4U0142 + 615 might be a signature of the thin degenerate torus we describe here .