Day 2 - January 2nd, 1945
0600 hours
Staff Report
Current Weather: Snow
Visibility: 2km
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The hastily drafted plans are communicated to division commanders, with operations to begin immediately. SS Totenkopf starts to advance, but the tanks leading the advance immediately run into strong resistance by the 86th Guards Rifle Division's infantry. The 6th Panzer Division and attached elements run into detached elements of the 18th Tank Corps, including a regiment of ISU-122 tank destroyers, west of Bickse and lose several Hetzers and Panthers.
SS Wiking begins its encirclement operation, with the 2nd Battalion of the 5th Panzer Regiment spearheading the advance, closely followed by mechanized infantry of the Westland and Germania Regiments. Meanwhile, 1/5th Panzer and the 5th Assault Gun Battalion, holding the defensive line against the 18th Tank Corps' offensive, come under a strong attack and are forced to partially retreat from the river. The 18th Tank Corps attempts to evacuate its position once the flanking attacks are spotted, but the terrain prevents them from achieving that before the pocket is sealed at 1000.

Bloody stalemate ensues. SS Totenkopf presses against the 86th Guards Rifle Division, which refuses to retreat despite taking massive casualties, and manages to advance a mere two kilometers over the next four hours. Wiking and the trapped 18th Tank Corps exchange fire, while infantry attempts to breach the encirclement; neither side makes any significant advance. The 10th and 11th Panzer Regiments manage to destroy the 18th Tank Corps' ISU-122 regiment, and subsequently proceed to advance westwards unopposed. The 271st Panzerjägers, on the other hand, are thrown back from a town they captured by a Soviet counterattack before infantry of the 6th Panzer Division can arrive to reinforce them.
At 1400, results begin to appear. SS Wiking isolates the majority of the 18th Tank Corps' tanks west of the river and begins to push against it, inflicting heavy losses. Totenkopf advances two kilometers over the next two hours, still facing stiff resistance by the 86th Guards Rifle Division. At the same time, tanks of Division Group Pape advance up to Torbagy, approximately 15 kilometers from Axis troops in Buda.
Attacks continue against the isolated 18th Tank Corps; slightly before 1800, the survivors of the main force surrender to SS Wiking, though several units continue resisting in the rest of the pocket. At the same time, Totenkopf surrounds the remnants of the 86th Guards Rifle Division 4 kilometers east of Sarisan. Division Group Pape's tanks halt their advance until the 6th Panzer Division catches up and deploy in case a counterattack is mounted against the salient.
As night falls, most units not directly involved in combat halt their advance to rest. The 86th Guards Rifle Division briefly escapes their encirclement but are subsequently trapped again by troops of the Szent László Infantry Division. The rest of the 18th Tank Corps surrenders, with the exception of several hundred infantry and combat engineers in Zsambek. With the arrival of more troops of the 6th Panzer Division, Soviet resistance in the south is crushed, and the division begins establishing a defensive line. The 96th Infantry Division, having marched south all day, is also beginning to reinforce the southern sector.
Finally, in a strange move, a Soviet unit moves into contact with the 1st Panzer Division's line west of Szekesfehervar (This is way south of the action, so don't bother looking for it on any maps I posted so far). This unit is apparently attached directly to the 4th Guards Army, and is therefore likely a Penal Company sent on some kind of suicide mission (Or perhaps they were just coming over to ask if we have any milk).
End of Day 2
SS Wiking has won a spectacular victory by destroying the 18th Tank Corps, but elsewhere results vary. Totenkopf's attack inflicted massive casualties on the 86th Guards Rifle Division, but failed to advance more than a few kilometers, with the Szent László Infantry Division supporting it achieving similar results despite facing much lighter opposition. The 6th Panzer Division's Kampfgruppe achieved its objectives, but most of its forces are still trying to catch up with leading elements.
Soviet units in Budapest still advance slowly, but most of the ground lost is in Pest, east of the Danube river. Buda is the critical sector here, and it is so far holding fairly well.
I haven't mentioned this yet, since it's still rather irrelevant, but the 3rd Panzer Division has been released for operations and is currently crossing the Danube. The 711st Volksgrenadier Division has also arrived by train and is moving to reinforce the southern flank of the salient.
Casualties and Losses
Axis -
Infantry: 4,105
Guns: 28
Vehicles: 134
Allied -
Infantry: 11,607
Guns: 108
Vehicles: 199