A free material surface which supports surface diffusion becomes unstable when put under external non-hydrostatic stress. Since the chemical potential on a stressed surface is larger inside an indentation, small shape fluctuations develop because material preferentially diffuses out of indentations. When the bulk of the material is purely elastic one expects this instability to run into a finite-time cusp singularity. It is shown here that this singularity is cured by plastic effects in the material, turning the singular solution to a regular crack.