1 - do not use dry graphite in a lock, it can become impacted with the stuff and the lock will jamb. Do use a good lock lube, at this point however I'd suggest a good spray lube to get it loosened up.

2 - As Pawosd says, use a vibrating sander or something on the head of the key as you attempt to turn it (with the steering lock NOT bearing against it of course), it will likely eventually move. This method has been used MANY times by folks on this forum, and will save you most of that $400 plus possible damage to your dash.

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- Jeff