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Does anyone know why this would be happening? The liquid is touching the glass material on the inside face of the wine glass. What I am seeing is the tessellated shapes of the glass material. Is there a way to change this when the materials are touching?

Nested dialectrics...You can choose a rendering prioirty order in the MXM. Check out the Maxwell documentation here...
https://nextlimitsupport.atlassian.net/ ... ielectrics

AND here:
https://nextlimitsupport.atlassian.net/ ... in+a+glass